Chicago, IL (August 9, 2023) – Pearlmark announced that it closed on a $27 million mezzanine debt investment for the completion of Encore at Tradition (“Encore”), a multifamily development in Port St. Lucie, Florida. Encore is a 55+ age-restricted community development that will have 415 units, comprising 303 single-story for-rent villas with attached two-car garages and private patios and two, 56-unit 4-story apartment buildings offering a mix of one- and two-bedroom units.
The investment was made on behalf of Pearlmark Mezzanine Realty Partners V, L.P. (“Mezz Fund V”). Madison Realty Capital, a repeat senior lending partner of Pearlmark’s Mezz Fund V, provided the senior loan. The project is developed by America Walks at Port St Lucie, LLC, a partnership between the principals of Pride One Construction, Brokaw Development Services, and Riley Hotel Group. Headquartered in Cleveland, Ohio, the combined development team has constructed over 20,000 residential units.
The property is located within Tradition, an 8,300-acre master-planned community in Port St. Lucie, Florida established in 2003. Construction of Encore is approximately 55% complete, with the first phase expected to be delivered in the fourth quarter 2023. Upon completion of the four phases in the summer of 2024, the property will feature a 15,000-square foot clubhouse, full-service restaurant, fitness center, pool and hot tub, theatre room, onsite salon, spa, and a medical/physical therapy office. Additionally, Encore will include a 38,000-square foot amenity deck featuring a dog park, pickle ball courts, bocce ball, shuffleboard, and other lawn games. The amenity-rich asset is situated on 21 acres of walkable open space that include walking and biking trails and a canal-front boardwalk.
Steve Gordon, Managing Director of Pearlmark, arranged the transaction for Pearlmark. Mr. Gordon commented, “We are excited to be a lending partner in the Encore at Tradition development within the strong growth area of Port St. Lucie. Encore will offer tenants a great living experience with a choice between villas and apartments with a first-class amenity package.”
Doug Lyons, Managing Principal and Head of Debt Investments for Pearlmark, further commented, “Encore is an exciting development to be committed to given its highly amenitized resort-style design, outstanding location in Tradition, Port St. Lucie, and the experienced sponsorship in the America Walks team. The project is well positioned to meet continued demand for active senior living communities in Florida.”
Pearlmark is a Chicago-based investment firm that targets domestic core-plus to value-add real estate opportunities via commingled funds, separate accounts, and joint venture structures. Since 1996, Pearlmark has sponsored more than a dozen real estate equity and debt investment programs and completed 573 real estate equity and debt transactions on behalf of investors, representing $5.6 billion in equity capital commitments and $13.9 billion in gross investment value. In credit, Pearlmark has now originated 151 loans aggregating $2 billion in commitments. Pearlmark is dedicated to creating value for its investors and offers a range of investment opportunities nationwide across various property types (office, industrial, multifamily). For more information, please visit https://www.pearlmark.com.