NEW YORK, Aug. 03, 2023 (GLOBE NEWSWIRE) -- Madison Realty Capital, a vertically integrated real estate private equity firm focused on debt and equity investment strategies, announced today that it has originated a $240 million mortgage loan to Baseline Property Group and JSB Capital Group for the acquisition of a 526-unit vacation resort property located on International Drive—a high-traffic tourism hub in Orlando, Florida. Baseline and JSB also secured an additional $40 million mezzanine loan for the acquisition from a private foreign family office.
Baseline plans to leverage its relationship with its sister company, Villatel, a hospitality brand and management company focused on short term rentals, to operate the 526 units inside the fully amenitized, hotel-style resort.
Josh Zegen, Managing Principal and Co-Founder of Madison Realty Capital, said, “Madison Realty Capital is pleased to provide flexible financing to Baseline Property Group and JSB Capital for the acquisition of single family rental properties to be operated as resort-style short term rentals in one of the top tourist destinations in the United States. Orlando’s hotel and short-term rental market continues to experience tremendous, long-term growth, and we believe that under Villatel’s management, the property is well-positioned to serve as a leading destination for travelers seeking high-quality vacation rental resort accommodations.”
Stephen Lobell and Brock Nicholas, Co-Founders of Baseline Property Group, said, “This is a monumental opportunity for Baseline Property Group, JSB Capital and Villatel. Villatel Orlando Resort, as the property will be known, is a truly unique “villa-hotel” resort. A resort property of this magnitude – nearly 80 acres in the heart of International Drive, one of the busiest hospitality corridors in the United States – represents the ultimate irreplaceable real estate asset. We anticipate an unmatched hospitality experience for our guests—who will enjoy the spaciousness and privacy of our villas coupled with the aesthetic consistency, service, and amenities characteristic of brand-name resort hotels. While we appreciate that they may not want to leave the front gates of our Villatel Orlando Resort, the City’s best shopping, dining, and entertainment—including Universal Studios and its highly-anticipated new theme park, Epic Universe (opening 2025)—are all just a few minutes away.”
Upon completion, the resort will comprise 256 condos, 200 townhomes, and 70 single family homes spanning a total of approximately 1MM RSF, with a unit mix of two- and three-bedroom condos, four- and five-bedroom townhomes, and six-, seven-, and nine-bedroom single-family homes. Each unit will feature custom designer furnishings and décor, including Villatel’s trademark themed bedrooms. Many units will include private pools, movie theaters, and arcade and gaming spaces, among many other in-home amenities. The resort will feature an on-site private $20MM amenity center, including a clubhouse, water park with 7 slides, lazy river, water playground, resort pool, fitness center, golfing swing suite, arcades, children’s playrooms, and diverse on-site eateries. The resort’s initial homes are expected to be available for rent in the fourth quarter of 2023, and all units are expected to be delivered into the rental pool by Summer 2025.
About Madison Realty Capital
Madison Realty Capital is a vertically integrated real estate private equity firm that, as of March 31, 2023, manages $11 billion in assets on behalf of a global institutional investor base. Since 2004, Madison Realty Capital has completed $23 billion of real estate transactions, largely through direct lending to borrowers with flexible and highly customized financing solutions. Madison Realty Capital’s strong underwriting capabilities provide certainty of execution in complex, time-sensitive situations. Headquartered in New York City, with offices in Los Angeles, Dallas, and Israel, the firm has 75 employees across its real estate investment, asset management, and development disciplines. Madison Realty Capital has been named to Commercial Observer’s prestigious “Power 100” list of New York City real estate players every year since 2016 and was recognized in March 2023 by PERE as the Debt Firm of the Year, North America for Fiscal Year 2022. To learn more, follow Madison Realty Capital on LinkedIn and visit madisonrealtycapital.com.
About Baseline Property Group
Baseline Property Group is a vertically integrated platform investment company focused on sourcing, financing, developing, and operating short and long-term single-family rentals. Headquartered in Orlando and Miami, the firm’s principals have developed 4,000+ market-leading vacation rentals and delivered 20,000 single-family homes, with an aggregate value of $7B+. Leveraging its deep industry access, diverse expertise and wholly owned operational subsidiaries, Baseline is uniquely positioned to create high-quality communities that generate market-leading returns for its investors.
About JSB Capital Group LLC
JSB Capital Group is a privately-held real estate investment management firm with primary offices in Miami, New York City and Baltimore. JSB invests both directly and alongside best-in-class operators focused on specific asset classes, geographies and investment strategies. JSB has invested more than $3bn of equity, representing greater than $10bn of asset value across various asset classes, and has acquired or built nearly 50,000 apartment units across the United States. While its focus is multifamily assets, JSB actively sources opportunistic investments across the asset spectrum, including vacation rental properties, seeking to devise creative capital markets and operational strategies to drive superior risk-adjusted cash yields and long-term returns. For more information, visit jsbcapitalgroup.com.
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