Brevard Luxury Apartment Development Secures $51 Million Construction Loan
Funding and Financing
A significant step forward in Brevard County’s real estate development has been achieved with the Madison Midtown luxury apartment project securing a substantial $50.7 million in funding. This financial arrangement was facilitated by Berkadia, benefiting Charlotte-based Madison Capital Group. The project’s funding comes from a $33.5 million senior loan provided by First Citizens Bank, supplemented by a $17.2 million contribution from Forum Capital Advisors.
Project Details
Located at 1034 S. Babcock St. in Melbourne, Madison Midtown is set to offer 240 garden-style apartments designed to cater to a varied clientele with its one-, two-, and three-bedroom options. Future residents will enjoy premium amenities, including a swimming pool and flexible workspace facilities. The strategic placement of the apartments ensures proximity to key employment hubs like Northrop Grumman and L3 Harris, and they are just a 10-minute drive from the serene beach.
Developer and Other Projects
Madison Capital Group continues to expand its footprint in Central Florida with four ongoing projects, including two additional developments in Brevard County and another at Wyld Oaks in Apopka. Notably, Berkadia also facilitated $60 million in funding for another Madison multifamily project in Bradenton, highlighting the developer’s dynamic growth strategy in the region.
Market Context
The Space Coast and Sarasota Metropolitan Statistical Area (MSA) are poised for sustainable rent growth due to the influx of population, the presence of high-paying jobs, and the appealing coastal lifestyle. Madison Capital Group’s ability to deliver high-quality multifamily developments is positioning the company favorably, withstanding market challenges that other developers might face.
Local Real Estate Trends
Brevard County has experienced robust activity in the multifamily housing sector in recent years, although this has seen a deceleration due to increased coastal insurance premiums and rising construction costs. Over the past year alone, the county has added 2,331 new apartments, contributing to a significant total of 8,981 units since 2019. Looking ahead, there are currently 1,341 units under construction across the county, with the average rent price standing at $1,630 per month, slightly below the national average by about $100.
Impact of External Factors
Recent hurricanes have dramatically impacted insurance costs for multifamily developers, adding financial pressure and potentially slowing down construction starts, particularly affecting smaller developers. This evolving scenario underscores the complexities faced by those involved in real estate development within coastal regions. Despite these challenges, Madison Capital Group’s strategic planning and robust financing arrangements for projects like Madison Midtown highlight its resilience and adaptability in today’s market.
