$42M loan on behalf of Kingwood Orlando Reunion Resort LLC for the refinance of the Reunion Resort in Kissimmee, Florida. TrueRate Managing Director Dan Gorczycki and Production Associate Peter Stobierski secured the capital from a New York-based finance company.
Known as The Reunion Resort, located at 7593 Gathering Drive, the property comprises over 2,000 acres off Interstate 4, 12 miles east of Kissimmee and 20 miles northeast of the city center of Orlando. Amenities include three championship golf courses, tennis courts and academy, a spa and fitness center, 25,000 square feet of conference facilities, seven restaurants, 11 swimming pools, and a five-acre water park. The Reunion Resort owns 25 villas and an additional 271 villas and 87 homes participate in the resort’s rental management program. There are over 1,000 additional homes/villas that pay fees to utilize the amenities.
The property performed extremely well throughout the COVID-19 pandemic. Since purchasing the property in early 2019 from LRA Orlando, LLC , the owner has invested $9 million in renovations and significantly increased the net cash flow for the property. The loan proceeds will be used to pay off the existing acquisition loan, relocate golf holes and expand the water park.
“This was a great execution for our client, who was able to lock in a high cash-on-cash return on a stable asset. Their hands-on management approach will serve to enhance the returns with additional revenue sources that will be durable,” said Gorczycki. “By creating a competitive prospective lender pool we were able to strategically compress the spread, resulting in optimal loan terms for our client. With over $975 million in the pipeline, this deal further highlights TrueRate’s unique ability to secure competitive financing for all property types including resort properties.”
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