Dolce Living Royal Palm is a mortgage which will provide financing for the acquisition of a newly constructed class-A multifamily property located in Orlando, FL that offers a best-in-class amenity package and high-end finishes.
The mortgage will be a structured financing execution in which the REIT originates a whole loan and then sells the A-Note, retaining the higher yielding B-Note.
The property consists of 326 units across 311,612 square feet with units ranging in size from 655 square feet to 1,397 square feet.
At time of acquisition, rents were below the surrounding competitive set, presenting an opportunity for immediate upside.
The deal’s Sponsor and property manager are both strong repeat Sponsors of Nuveen Real Estate; the Sponsor will be investing new equity to show alignment for the deal. The REIT will be investing in the deal at a valuation lower than the current cost to build in the market, representing a valuation discount to newer product.
The Orlando location is consistent with the Tomorrow’s Cities target markets and adds geographic diversification.
Orlando is a “Tomorrow’s City” and is a target market for multifamily investment due to strong rent and population growth above the national average.
Dolce Living Royal Palm is located in the Kissimmee submarket, which benefits from close proximity to primary white-collar employment centers including seven hospitals, as well as close proximity to Walt Disney World Resort, which is a major employment driver in the area.
The deal is located only minutes away from major highways, including highway 429 and I-4. The population in the immediate area is projected to grow at a rate that is double the national average.
Dolce Living Royal Palm has benefitted from the recent increase in demand for apartments in the Orlando area with the Kissimmee/Osceola County submarket experienced 24.1% rent growth in 2021.