Miami-based Circle Capital Partners has fallen behind on mortgage payments at a 36-year-old apartment complex in Broward County it is in the process of renovating.
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The $32.5M loan tied to the 144-unit Circle Sunrise Apartments in Sunrise was placed in special servicing after the property's owner missed monthly payments from December through February and failed to secure the required rate cap, according to special servicer commentary in the Morningstar Credit database.
Circle Capital Partners co-founders Todd Linden and Richard Valdes are the sponsors of the floating-rate loan, which matures in October. Special servicer Keycorp Real Estate Capital Markets wrote that it is in discussion with the lender on "resolution paths."
Linden and Valdes didn't respond to Bisnow's requests for comment.
Circle Capital purchased the property, then called Heron Landing, for $22M in September 2022, financing the deal with a $32.5M mortgage from New York-based Greystone Servicing Co., the South Florida Business Journal reported at the time.
The investor quickly started renovating the complex at 5330 and 5350 NW 88th Ave., which was built in 1989. They planned full renovations of 66 units that had been largely untouched, plus upgrades to the 78 previously refurbished apartments.
Circle Capital also planned to build a new fitness center, create a resident lounge from a renovated adjoining building, and renovate the leasing center.
As of June, the property was 80.6% occupied, down from 87.5% three months prior, according to Morningstar. The decline could be tied to ongoing renovations, which were estimated to cost $18K per unit, although the work was expected to be completed by 2024.
About 25 apartments are available, 13 of which are available immediately, according to its Apartments.com listing. The loan is listed on Morningstar as more than 90 days delinquent.
Circle Capital also owns the 178-unit Vue on 67th in Davie, which it acquired in 2021 for $36.5M. Valdes and Linden co-founded the firm in 2019 and claim to have executed more than $3B in multifamily deals between them. Linden announced on LinkedIn in January that he took the position of managing director of investments at Austin-based RPM Living.
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