Estate Companies Gets $78M Loan for South Florida Multifamily Development
The Estate Companies has scored a $78 million construction loan for its South Florida multifamily, Soleste Reserve 1, according to a report from The Real Deal.
With the financing provided by Banesco USA, the funding adds to the $6.5 million it supplemented in 2022 when the developer first bought the property at 5079 Southwest 48th Street. Now that amount has been increased by $71.5 million.
With construction yet to begin, the eight-story building in Davie, Florida is set to feature 347 total apartments. The breakdown will consist of 165 one-bedrooms, 68 two-bedrooms, seven three-bedrooms, and 94 studios. The units will range from 500 to 1,100 square feet. Of the total, 52 will be set aside for workforce housing, which qualifies those making 80 to 120 percent of the median area income. Also, the ground floor will feature 13 live-work units. Construction for the development is expected to take roughly 24 months.
Soleste Reserve 1 is located near Soleste Reserve 2, which the estate acquired earlier in the year for $8.2 million. The latter, at 5079 Southwest 48th Street, is set to feature over 300 residential units and eight stories.
Currently, Estate's developments include Soleste on the Bay tower in Aventura, which is set to feature 363 units, according to The Real Deal. Also, it recently completed Soleste NoMi Beach, which is right next door and hosts 367 units.
While high supply has impacted multifamily developers, particularly in Florida — finally demand is starting to catch up again. Some 77,600 units became available in Florida during the year ending with the third quarter, with demand hitting nearly 68,000 in the three months, according to a recent analysis by RealPage. Also, since 2020, certain regions are seeing more demand than others. Lakeland has enjoyed a 34% increase in occupied units. The trend was also strong in Cape Coral, Sarasota and Jacksonville, which all had a greater than 20% increase in occupied units.
Source: GlobeSt/ALM