REIT Invests in Florida Multifamily Development
Behringer Harvard, a Dallas-based commercial real estate investment firm, acquired some senior mortgage debt of the Palms of Monterrey, a Fort Myers, Fla. resort-style multifamily community. The investment was made through the company’s public non-listed real estate investment trust (REIT), Behringer Harvard Opportunity REIT II, in partnership with real estate developers DeBartolo Development and Christian Tyler Properties. Built in 2001, the 408-unit development is a collection of 17 three-story buildings located on a 28-acre site on Florida’s southwest coast. Amenities at the commercial property include a clubhouse with a business center, a fitness center with racquetball facility, a lighted tennis court, a playground, two heated pools and a poolside hot tub. “A previous owner of the property obtained the senior mortgage on the Palms of Monterrey to fund a conversion of the apartment community into condominiums,” said Samuel Gillespie, the REIT’s chief operating officer. "However, changing market conditions subsequently interfered with the borrower’s plans, and the completed condominium units were never sold." Gillespie added: “This situation enabled us to acquire the senior mortgage debt at a discount and refocus the property as rental apartments." Write to Austin Kilgore.