Madison Realty Capital provided a $127 million construction takeout loan for Arcadian, a newly completed 502-unit multifamily development in Fort Lauderdale, Florida, according to Commercial Observer. The two-building complex was developed by Fuse Group and KREA Developments and received a temporary certificate of occupancy earlier this year.
The financing refinances an existing $84.5 million construction loan that Centennial Bank issued in 2024, supporting the Arcadian as it leases up and moves toward stabilization. Scott Wadler, Brad Williamson, Bobby Dockerty, and Nicholas Horowitz of Berkadia represented the sponsors in the debt transaction.
What happened
Located at 640 Northwest Seventh Avenue, adjacent to Northwest Sixth Street in the Sistrunk District, the Arcadian includes two eight-story buildings. The project features 151 apartments priced to be affordable for people earning between 100 and 120 percent of the area median income. The property also contains about 15,000 square feet of ground-floor retail space and a 629-spot parking garage.
The development capital structure also includes municipal funding. The Fort Lauderdale Community Redevelopment Agency provided $10 million in financing, which includes an $8 million forgivable loan from its Development Incentive Program. Commercial Observer reported that Madison Realty Capital has been active in refinancing newly completed South Florida rental properties, having also supplied $227 million in July for the 559-unit Metro Parc project in Hialeah.
What it changes for a closing
Refinancing a newly completed multifamily project with municipal incentive financing requires closing teams to manage multiple layers of debt and public compliance. Counsel must coordinate the payoff and release of the $84.5 million construction loan from Centennial Bank while reviewing documentation tied to the Fort Lauderdale Community Redevelopment Agency funding. Because the agency provided $10 million, including an $8 million forgivable loan, legal teams must verify that the sponsor remains compliant with program requirements and that regulatory terms for the 151 designated affordable units align with senior lender guidelines.
The closing team must also verify the status of project completion. With the property operating under a temporary certificate of occupancy during ongoing lease-up, the takeout lender must confirm the schedule for final sign-offs, inspect commercial space delivery across the 15,000 square feet of retail, and align loan disbursements with ongoing stabilization milestones.