News Releases
CANYON CAPITAL REALTY ADVISORS PROVIDES $24.2 MILLION BRIDGE LOAN FOR ACQUISITION OF FALCON SQUARE APARTMENT COMMUNITY IN ORLANDO, FLORIDA
LOS ANGELES (January 21, 2010) - LOS ANGELES (January 21, 2010) - Canyon Capital Realty Advisors (Canyon) funded a $24.2 million senior bridge loan to Falcon Square Apartments, LLC for the acquisition of Falcon Square, a 379-unit, Class A apartment complex located three miles north of Walt Disney World in Orlando, Florida.
The property was acquired in a time sensitive, opportunistic transaction by a joint venture between principals of The Falcone Group, DeBartolo Development, LLC and Duncan Hillsley Capital LLC. The sponsor used Canyon's acquisition financing as a bridge to permanent government-sponsored agency financing, which the sponsor plans to secure once the property achieves stabilization.
Falcon Square was developed by The Falcone Group, a Boca-Raton-based developer, and was completed in 2008. In late 2009, The Falcone Group was presented with the opportunity to payoff its senior construction loan at a substantial discount provided that it could effectuate payoff by year-end. The Falcone Group was able to capture this discounted payoff opportunity and satisfy its construction debt obligation through the sale of the property to the new joint venture partnership.
"Over the past six months, we have seen lenders become increasingly receptive to discounted payoffs provided that sponsors can demonstrate the ability to close quickly with all-cash," said Jonathan Roth, Principal of Canyon Capital Realty Advisors. "We are excited to have empowered the sponsor to close on this opportunistic acquisition by year-end and look forward to continuing to build our relationship with The Falcone Group, DeBartolo Development, and Duncan Hillsley Capital."
"This deal highlights our continued interest in multifamily, and is also consistent with Canyon's investment philosophy of providing capital to experienced real estate operators for assets that have substantial downside protection," said Bobby Turner, Managing Partner of Canyon Capital Realty Advisors.
The apartment community is currently in its final stages of lease-up at 86 percent occupancy. The property attracts tenants from Disney World and nearby resort personnel due to its proximity to local tourism attractions. The asset is conveniently located in Winter Garden, less than two miles west of C.R. 535/Winter Garden Vineland Road, ten minutes from State Road 429/Western Beltway, and 15 minutes from Florida's turnpike. The property is part of the Independence development, a master planned residential community that features luxury amenities including recreation clubhouses, basketball courts, tennis courts, swimming pools, a playground, conservation areas, extensive pathways and parks. The property is managed by JMG Realty.
"We are thrilled with the closing of the acquisition and to be working with Canyon on Falcon Square," said Edward Kobel, President and COO of DeBartolo Development. "Canyon's underwriting expertise was invaluable for capturing this discounted opportunity and closing this deal within an extremely limited timeframe."
Canyon has significant experience in financing and developing multifamily assets. Since inception, Canyon has completed over 50 multifamily transactions totaling more than $850 million of invested capital.
About Canyon Capital Realty Advisors LLC
Canyon Capital Realty Advisors LLC and its affiliate Canyon Capital Advisors LLC are registered investment advisors and money management firms based in Los Angeles, Calif., with approximately $17 billion of capital under management. Canyon's real estate activities focus on providing debt and equity capital to real estate owners, operators, developers, corporations and entrepreneurs, enabling them to participate in transactions that would have traditionally eluded them due to capital constraints. Canyon has completed 229 real estate and mortgage transactions totaling more than $3.7 billion of invested capital, including the origination of senior, mezzanine and bridge loans, note acquisitions, recapitalization of partnerships, and the acquisition of over 12 million square feet of real estate. These investments encompass a diverse mix of real estate property types including retail, entertainment, multi-family, industrial, office, hospitality, land, mobile home and mixed-use and mortgage loans secured by such property types.
