The financing consists of an 80%-senior and 10%-mezzanine loan, which together account for 90% of the $110-million total cost of acquiring and converting the multifamily asset into residential condos. Buchanan Street's Mike Guterman, SVP, and Kevin McKenzie, VP, played lead roles in arranging the financing, but declined to disclose the loans' rates and terms.

Sharaby says he has reservations for 25% of the units before opening the doors or conducting any marketing. The property was built in 1997 and, although it needs no renovation, according to Sharaby, he hired Perla Lichi, a South Florida designer, to redecorate the common areas and design three model units.

The property includes three ground-floor commercial spaces and 10 different residential floor plans on the waterfront. One-, two- and three-bedroom units range from 850 sf to 3,000 sf and have balconies and 9- to 13-foot ceiling heights along with gourmet kitchens and other amenities. Sale prices start in the $300,000s, and a two-story, fully furnished, five-bedroom penthouse is priced at $2.5 million. Brickell Key is a private island just one block from Brickell Avenue in the heart of the Miami financial district, connected by a pedestrian walkway. Four other condo towers, "all priced higher than Courvoisier Courts," Sharaby says, are located there along with Mandarin Oriental hotel. The Courvoisier property includes a health club and spa, private movie theater, heated pool shaped like a Chinese fan, a billiards room and conference center. Falstaff Group has restored several National Historic landmarks across the country and recently renovated and converted Island Pointe, an 11-story multifamily asset in Bay Harbor Islands, to condos, which sold out in less than a year, according to Sharaby.

Guterman says, "We have been seeing a lot of momentum in the condo conversion arena, and it will probably not slow down for some time. As the demand for coastal markets continues to increase, people's ability to purchase homes becomes more difficult, resulting in a demand for condominiums. Condo conversions are also becoming more attractive to investors who are seeking higher returns in a tight multifamily market."