Fuse and KREA Land $127M Takeout on Sistrunk's Arcadian

Madison Realty Capital has provided a $127 million takeout loan on The Arcadian, a 502-unit apartment project at 640 NW 7th Ave. in Fort Lauderdale, according to Commercial Observer. The sponsors are Fuse Group and KREA Developments. The loan refinances an $84.5 million construction loan from Centennial Bank, which closed in 2024.

Why it matters

The new loan is $42.5 million larger than the construction debt it replaces, about 50% more. A takeout that large usually reflects a lender underwriting stabilized income, not just the cost to build. Madison is lending against a building that is delivered and, per the source, received a temporary certificate of occupancy earlier in 2026.

That matters because the project is not purely market-rate. The Arcadian sits in the Sistrunk District, the city’s oldest African-American neighborhood, and 151 of its units are priced for households earning 100% to 120% of area median income. The Fort Lauderdale Community Redevelopment Agency put in $10 million, including an $8 million forgivable loan from its Development Incentive Program. A subsidized, income-restricted project cleared a lender at this size, which is a data point for anyone pricing workforce housing along NW 7th Ave. See our wider South Florida coverage.

The numbers

• Takeout loan: $127 million, or about $253,000 per unit across 502 units (our math).
• Prior construction loan: $84.5 million from Centennial Bank, 2024.
• Increase: $42.5 million, roughly 50%.
• Affordable share: 151 units, about 30%, at 100% to 120% AMI.
• Public money: $10 million from the CRA, $8 million of it forgivable.
• Program: two eight-story buildings, about 15,000 square feet of ground-floor retail and a 629-space garage.

The source does not disclose the loan’s rate, term, leverage or the property’s income. We are not inferring lease-up performance from the loan size alone.

What’s next

Watch lease-up pace and rents at the restricted tier. The 100% to 120% AMI band is the segment lenders are testing in Broward, and a stabilized Arcadian would give the next Sistrunk and NW 7th Ave. sponsor a closer comparable than any Miami-Dade deal. Developers weighing CRA incentives should note the forgivable portion: it lowers the equity needed during construction, but the takeout shows senior debt sized well beyond the original build loan.

Berkadia represented the sponsors on the financing.