JACKSONVILLE, FLORIDA (September 22, 2022) – Ryan Whitaker, senior vice president/managing director in Northmarq’s Jacksonville debt/equity office, arranged the $78.5 million construction-to-permanent financing for the development of Pinnacle Apartments. The to-be-built 376-unit, class A+, low-rise, multifamily property is located at 8760 Pinnacle Park Boulevard in Jacksonville, Florida. The transaction was structured as a 10-year term with 5-years of interest only payments followed by a 30-year amortization schedule. Northmarq arranged financing for the borrower through its relationship with a life company lender.
“Traditional multifamily developers with a long-term, build and hold strategy go through a standard two-stage financing process beginning with a short-term, floating-rate, full-recourse construction loan to acquire land, build improvements and carry a project through lease-up. Once the project has achieved a stabilized occupancy the developer looks to refinance its construction loan with a long-term, fixed-rate, non-recourse permanent loan,” said Whitaker. “In a period of rapidly rising interest rates and economic uncertainty we were able to deliver a single-close, construction-to-permanent loan structure which took increased interest rate risk off the table for our client.”
Pinnacle is well located in the Southside submarket within the Jacksonville MSA. Residents will benefit from its strategic location with close proximity to major thoroughfares and employment centers, as well as retail, shopping, dining and entertainment venues. Pinnacle’s modern design elements showcase two (2), four-story apartment buildings with elevators that wrap around a concrete parking garage structure, multiple pools, and additional outdoor recreational areas. This hidden garage concept improves curb appeal and provides additional security for residents.
Community amenities include a business center, clubhouse, lounge, 24-hour fitness center, two (2) resort-style swimming pools with sundecks, grill and picnic areas, movie theater room with recliner seating, car care center, EV charging, indoor bike storage, game room, parking garage with controlled direct-level access, dog agility park and indoor pet spa. Apartment amenities include in-unit washer/dryer, granite countertops throughout, custom cabinetry, subway tile backsplash in kitchen with an eat-in island bar, stainless appliances, walk-in closets, deluxe shower, sprinkler system, dishwasher, garbage disposal, pantry, built-in microwave, oven, range, and refrigerator with icemaker.