Fully Entitled Class A Multifamily Development

35MM Construction Debt, 36 month term with extensions, non-recourse preferred
Borrowers would prefer a construction to perm scenario with Agency, HUD, or Life Co perm loan options
80% LTC construction loan will have 1.70 DSCR at stabilization.

Tallahassee is a strong employment center
Residents attracted by no state income tax, temperate climate, and proximity to Tallahassee beaches
Market rents fall below 120% AMI limits triggering Live Local Act property tax abatements

Property was acquired at auction at a low cost basis.
Sponsor rezoned to PUD approved October 2025.
Joint venture partnership between sponsor and general contractor with GC providing bonding and completion guarantee.

The Tallahassee multifamily market demonstrates resilience amid broader Florida trends, supported by steady employment growth, robust net absorption outpacing deliveries, and a strong university-driven demand base from institutions like Florida State University and Florida A&M University. Challenges include a significant deficit in affordable housing units for households below 60% AMI, which heightens demand for mixed-income developments, and moderating rent growth due to increased supply in recent years. Overall, the market benefits from low unemployment (3.4%) and rising median household incomes ($63,721), fostering a stable environment despite national headwinds like elevated insurance costs in Florida.
Q4 2025 market vacancy is holding steady at 4.0% with an average in-place rent of $1,453 and a net absorption of 1,340 units. Employment growth has been positive at 1.5% YoY signaling strong demand recovery and limited near-term supply risks.
With a limited number of deliveries in the pipeline (<400), the outlook is positive with rent growth projected at 2-3%, vacancy stable at 4.0%, and expectations of continued employment gains. Demand remains strong for affordable and workforce priced housing although market cap rates reflect a lack of new product trades.

The property is located in the bustling city of Tallahassee, Florida, known for its vibrant culture and rich history. Tallahassee is home to Florida State University and Florida A&M University, bringing in a diverse student population.
Situated on Portland Avenue, the property is in close proximity to various amenities such as restaurants, shops, and entertainment venues. For example, the popular Governor's Square Mall is just a short drive away.
The surrounding area boasts a mix of residential neighborhoods and commercial establishments, providing a dynamic environment for businesses. Nearby neighborhoods include Parkside, Myers Park, and Lafayette Park.
Tallahassee is known for its outdoor recreational opportunities, with numerous parks and green spaces in the vicinity. Residents can enjoy activities like hiking, biking, and picnicking at places such as Cascades Park and Alfred B. Maclay Gardens State Park.
The property's location offers convenient access to major transportation routes, including Interstate 10 and US Highway 27. This facilitates easy commuting for tenants and customers alike, enhancing the property's attractiveness for commercial ventures.