Specialist real estate finance firm Reditum Capital has agreed an $11m (£7.9m) preferred equity facility with Cornerstone Asset Services, a property management company based in Orlando, for the development and operation of 492 affordable rental units in Kissimmee, Florida.
The deal will provide funding for the acquisition of a 25-acre site, which comprises a 436-room hotel and adjacent residential and commercial plots. The existing hotel and adjacent development plots will be converted into residential apartments, resident facilities and 12,000 sq ft of commercial space.
“The success of our Maingate Village transaction proved the high levels of demand for affordable rental housing existent in the Kissimmee area,” said Reditum Capital’s managing director Mark Stephen.
“We recognised the inherent profitability of this niche US market and, therefore, sought a similar transaction to build on this success with our JV partner, Cornerstone.”