KeyBank backs Orlando apartment community

KeyBank has provided a $44.5m first mortgage loan to Atlanta-based Preferred Apartment Communities (PAC), a public real estate investment trust, for the purchase of the CitiLakes Lux multi-family apartment community in Orlando, Florida.

The acquisition is backed by a 7.5-year floating rate loan priced at 2.17 percent plus 30-day Libor floor, or currently about 2.37 percent. The loan is amortized based on a 30-year schedule. In addition, PAC purchased an interest rate cap on 30-Day LIBOR at 4.33% for five years.

“The CitiLakes transaction reflects our continued focus on acquiring newly constructed Class A multifamily communities in strong submarkets, reinforcing our efforts to have the youngest multifamily portfolio in our industry,” said Leonard Silverstein, PAC’s president and COO.

The seller — Bristol Lakes, an entity affiliated to Columbus-based Flournoy Companies — bought the 17.5 acre site for $5.2m from Fifth Third Bank in September 2013.

Flournoy developed the 761,429 sq ft apartment complex at 12051 International Drive, which consists of eight four-story buildings totaling 346 units. The gated community also has a clubhouse, wellness center with cardio and spin rooms, a paved jogging trail, two on-site lakes, a coffee bar and a pool with cabanas.

Among recent deals, KeyBank in April originated a $215m Freddie Mac loan to refinance the Harbor Point apartments in Dorchester, Massachusetts.