ESG Kullen has landed a $8.4 million bridge loan for the acquisition of 93 units in Murano of Delray, a condominium complex in Delray Beach. Berkadia sourced the funding through MidCap Financial which provided a floating rate, four-year initial term loan, with three years interest only, at 65 percent of total cost. The asset was built in 2001 and features a clubhouse and fitness center, entertainment room with kitchen, resort-style pool and spa and lighted tennis court. Senior Managing Director Charles Foschini and Managing Director Christopher Apone of Berkadia’s South Florida office arranged the loan on behalf of the buyer.
“After a deep survey of the debt markets, MidCap emerged as a clear winner on what most lenders would deem a highly complicated transaction due to lack of true HOA control and the need for individual unit releases in order to allow the borrower to sell off individual units at the property,” said Christopher Apone. “MidCap was attracted to the exceptional Delray location, significant discount to replacement cost, and significant borrower experience in the fractured condo space.”
