Cavache Properties, LLC and Wilson Enterprises, LLC, real estate development and investment companies based in Pompano Beach, inked a financing deal to develop a 10-story high-rise building with an attached parking garage, amenity deck, and ground-floor retail space totaling approximately 5,200 square feet, located within the Old Town District of Pompano Beach.
Shannon Rex, Executive Managing Director for Colliers South Florida Debt & Equity services team, represented the developers in financing the $45 million senior construction loan provided by Bank OZK in addition to the $15.5 million preferred equity tranche provided by Artemis Real Estate Partners.
“The Old Town Square project will add new, Class A, state-of-the-art apartments to a tight residential market where we are seeing occupancy rates greater than 95%,” said Rex. “This deal demonstrates the growth and strength of the South Florida market.”
Old Town Square’s sponsors consist of a seasoned development team that has been active in South Florida for decades. As a result of a joint venture, principals of Cavache Properties, Wilson Enterprises and Adache Group Architects have joined to co-develop the project. The project is shovel-ready, designed and received all governmental and requisite approvals for construction and development.
Broward County’s multifamily submarket is at the top of the effective rent per unit in the region. According to RealPage, Inc., Annual effective rent growth is forecast to be 1.4% by the end of 2021, and average 4.7% through 2022 to 2024.
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