The Challenge
Since 2021, the sponsor has been steadily acquiring units within Cascades at Kissimmee, with the long-term goal of gaining control of the entire 304-unit community and repositioning it as a conventional multifamily asset.
With 221 units already assembled, the sponsor needed financing that could refinance the existing portfolio while providing the flexibility to continue acquiring additional units as they became available.
The Solution
Encore Finance provided a $31 million revolving line of credit across the sponsor’s 221 contiguous condominium units.
The facility was structured with a 36-month floating-rate term at 65% LTV, giving the sponsor the flexibility to continue stabilizing the existing portfolio while executing its ongoing acquisition strategy.
The Outcome
The financing gives the sponsor a flexible capital structure for the next stage of its business plan: continuing to acquire the community’s remaining units while improving and stabilizing the portfolio it already controls.
The 221-unit portfolio is currently 88% occupied with an 8.8% debt yield.
The transaction also marks Encore’s 11th loan with the sponsor group, reflecting a lending relationship that has grown alongside the borrower’s strategy.
Contact Us
Executing a complex acquisition or repositioning strategy? Contact Encore Finance today to discuss financing structured around your business plan.
