Rockhall Closes $20.6 Million Deal

The Apartments at Isles of Porto Vista is a proposed 123‐unit market rate new construction project to be developed on a 7.58-acre parcel in Cape Coral, Florida. The project is part of a larger condominium community development known as Isles of Porto Vista and will share a secure entrance gate and common area amenities with the larger community.

 

The improvements include 8 three‐story elevator apartment buildings. The unit mix will consist of 27 1‐ bedroom/1bathroom units (930 SF), 48 2‐bedroom/2‐bathroom units (1,080 SF) and 48 3‐bedroom/2‐bathroom units (1,200 SF). The units feature open floor plans, large bedrooms, walk‐in closets in master bedrooms, double sink vanities in master bathrooms and large lanai’s or patios. Unit amenities will include dishwashers, garbage disposals, stainless steel appliances, granite countertops and full-size washer/dryers.

 

Site amenities include a clubhouse featuring a community room, billiards/game room, fitness center, common area kitchen and restrooms. A children’s playground, barbeque and picnic areas will be added to the community’s common area amenities in connection with the subject development.

 

EXECUTIVE SUMMARY

 

 

CHALLENGES TO HUD FINANCING:  

 

The subject site was part of a larger 500+ acre master planned development in Cape Coral known as “Entrada.” In 2005, the borrower acquired Isles of Porto Vista at Entrada, a 37-acre multifamily parcel within the Entrada development, planned for a 444‐unit condominium community.  In 2006, the borrower developed the first phase of the community featuring 216 condominium units, all of which were subsequently sold. The community entry gate, clubhouse building and community pool, along with the roads, walkways and utilities for the entire development site were completed during this initial phase. Development of the remaining 228 units was pushed off due to the dramatic downturn in the housing/condominium market in 2007.  When the housing market rebounded in 2016 the borrower wanted to develop the remaining portion of the site as a multifamily rental housing community to be completed in two phases. This FHA Insured 221(d)4 mortgage financing was structured to complete the construction of the first phase, featuring the subject’s 123 apartment units.

 

The Apartments at Isles of Porto Vista will function as a traditional, market rate, rental apartment community.  However, it will utilize the shared clubhouse, common area amenities, community pool and ingress/egress of the larger condominium development. The community space is owned and managed by the Porto Vista Community Association, a non‐profit Homeowners Association (“HOA”). Access‐rights to use and maintain the community space had to be established via common area easements and maintenance agreements that were acceptable to HUD. In addition, much of the existing infrastructure completed with the original development has to be torn up and replaced to accommodate the revised site plan. 

 

Since the housing crash of 2008 many “Fractured” condominium developments in Florida have been presented to HUD for 221(d)(4) multifamily apartment financing.