MELBOURNE, FL - Walker & Dunlop announced that it structured $30,589,100 in financing through the United States Department of Housing and Urban Development (HUD) for The Highline apartments, a 171-unit, mixed-use, multifamily complex located in Melbourne, Florida. The transaction was promoted by several local businesses who advocated for the development of The Highline to support young professionals and millennials seeking to relocate to the area.
The City of Melbourne is located within Florida's "Space Coast," which has been newly dubbed America's "High Tech Titan." The area plays host to key aerospace and tech companies such as Northrop Grumman, Space X, Blue Origin, Harris, Lockheed Martin, and GE as well as the Florida Institute of Technology. These major employers have added over 8,000 jobs in 6.5 years1, causing a large influx of young, well-paid employees and increasing demand for modern and urban apartments. As the downtown district revitalizes, The Highline directly addresses this demand, marking the city's first Class A, market-rate high-rise multifamily building in the historic district, making it a unique offering in the market.
Jeremy Pino and Livingston Hessam, from Walker & Dunlop's Capital Markets group, led the transaction in partnership with the company's HUD experts, Keith Melton and David Strange. The team worked with several parties to overcome a rising interest rate environment and the increasing cost of construction on behalf of the sponsors, Richard Samuel Zimmermann, Jr. and Sam Zimmerman ("Zimmerman Development"). Their innovative solution for funding the development of the market rate apartment complex included a fixed rate, 40-year loan utilizing HUD's Section 221(d)(4) mortgage insurance program.
Mr. Zimmerman stated, "This was a complex transaction involving the partnership of the City of Melbourne and HUD. Our success was a direct result of the expertise and professionalism of Walker & Dunlop, and Jeremy Pino in particular."
"We were thrilled to partner with our HUD experts to make this purpose-built transaction possible and to provide a unique development that will attract and enhance the City of Melbourne's young professional market," commented Mr. Pino. He added that, "The Highline is following a trend that we are seeing throughout Florida, in which cities are encouraging the development of multifamily in the downtown urban cores. The partnership between Zimmerman Development and the City of Melbourne to build the 8-story midrise will be transformational for downtown Melbourneand Brevard County."
The Highline will feature 171 units with a luxury amenity package, including a pool, sundeck, gated dog walk area, and a fire pit. A clubroom, catering kitchen, sports bar, game room, and fitness center with a yoga studio represent additional amenities housed within a clubhouse.