Hillcrest Finance Lends $42M for Orlando Area Resort Refi – Commercial Observer

Hillcrest Finance has closed on a $42 million loan for the refinance of a resort property in suburban Orlando, Fla., near the Walt Disney World, Commercial Observer has learned.

The Manhattan-based firm provided the debt package to Kingswood International Resorts, which purchased Reunion Resort in Kissimme, Fla., three years ago for $32 million from real estate investment firm Lubert Adler. The new owner, who has invested $9 million into the property, will use proceeds to pay off an existing acquisition loan from YAM Capital, relocate golf holes and expand the water park in the resort.

TrueRate Services‘s Dan Gorczycki and peter stobiersky arranged the transaction.

“This was a great execution for our client, who was able to lock in a high cash-on-cash return on a stable asset,” Gorczycki said in a statement. “By creating a competitive prospective lender pool we were able to strategically compress the spread, resulting in optimal loan terms for our client.”.

Located at 77593 Gathering Drive, the property comprises more than 2,000 acres, 20 miles northeast of Orlando. Amenities include three championship golf courses, tennis courts, a spa, a 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 one-level structure villa homes. An additional 271 villas and 87 homes participate in the resort’s rental management program. There are more than 1,000 other homes or villas that pay fees to utilize the amenities.

Representatives for Hillcrest Finance and Kingswood International Resorts did not immediately return requests for comment.

Andrew Coen can be reached at acoen@commercialobserver.com.

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