BridgeInvest Funds $10.75 MM Pre-Development and Cash-Out Loan in Orlando

BridgeInvest recently closed Reunion Village, a $10.75 MM pre-development and cash-out loan in the Orlando, Florida suburb of Davenport.  The loan’s collateral includes three commercial outparcels and 243 single-family lots on 75 acres of land. Two of the three commercial outparcels have recently executed retail ground leases for a LongHorn Steakhouse and an Olive Garden, two brands owned and operated by Darden, a national restaurant operator. Outside of the loan’s collateral, the site will also be anchored by a full-service hospital owned and operated by Orlando Health, one of the two major medical service providers in Central Florida.

The loan proceeds will allow the sponsor, Encore Capital Management (“Encore”), to finance the horizontal development of the three commercial outparcels and also provide it additional liquidity. Encore is a major South Florida-based development and construction firm that is spearheading development in the area. Reunion Village is the second transaction between BridgeInvest and Encore.

Transaction Highlights

Adaptive Structure
BridgeInvest’s loan features an adaptive structure across a variety of collateral that will provide the sponsor with the loan proceeds needed for both development and additional liquidity.

Complex Zoning Regulations
The property is located within a Florida Development of Regional Impact (“DRI”), requiring a unique analysis of the collateral’s value given complex DRI-related zoning regulations. Reunion Village is the second loan located in a DRI that BridgeInvest has closed in 2019.

Repeat Borrower
The loan was brought directly to BridgeInvest by an existing borrower relationship, evidencing the value proposition BridgeInvest delivers to its clients.