HIALEAH, FL – Walker & Dunlop, Inc. announced that it has structured a $67,211,400 financing for the construction of Shoma Village Apartments, a mixed-use Class A property with 304 apartments and 11,625 square feet of retail space. Located in Hialeah, Florida, just 15 miles northwest of Miami, the area is seeing a significant increase in real estate investment. Previously known as an industrial hub, the city has attracted the interest of multi-family developers and investors thanks to the relatively low cost of land and excellent access to nearby employment centers.
Led by Keith Melton, David Strange, Livingston Hessam and Jeremy Pino, Walker & Dunlop arranged the loan through the U.S. Department of Housing and Urban Development’s (HUD) 221(d)(4) New Construction Program, which includes both construction and permanent financing in one loan. The team secured a two-year construction term, followed by a fully amortized 40-year fixed rate loan. The financing also features a declining prepayment schedule for the first ten years following construction and is open to prepayment at par for the remaining 30 years.
Mr. Pino commented, “Residential urbanization in cities like Hialeah is something we see all over Florida, and is very similar to two HUD 221(d)(4) loans we recently made: apartments Highline in Melbourne city center and Mirrorton apartments. in downtown Lakeland. These infill projects provide communities with Class A apartments next to walkable restaurants, shops, and other amenities essential to these cities’ prosperity. »
“Shoma Village was approved by HUD just prior to the economic shutdown caused by COVID-19,” Mr. Melton said. “Despite limited access to local municipalities, remote working and general uncertainty caused by the pandemic, we are pleased to have completed this transaction despite several unforeseen disruptions. It is a credit to the strength of the project, as well as ‘To the developers’ confidence with the HUD build program that we were able to complete this deal.’
Massoud Shojaee, Chairman and President of Property Developer, Shoma Group, said: “Partnering with Walker & Dunlop has been smooth and has been a great experience. We are very excited about our project in Hialeah, which we believe will usher in a new era and a new way of life for the city.”
One of the largest Spanish-speaking communities in the country, 96.3% of Hialeah residents reported speaking Spanish at home in 2016. The city also has the highest percentage of Cuban and Cuban American residents of any city in the states. States, at 73.37%. the population, making the Spanish language an important part of daily life in the city1.
Shoma Village apartments will be designed with Hialeah in mind, featuring smaller, “smart” units and upscale accommodations at affordable prices. Community amenities will include a 7,300 square foot clubhouse, swimming pool and large clubroom with social areas, big screen TVs, game room and business center with private offices.