Locally based G2 Development LLC is borrowing $13.3 million from Oak Brook, IL-based Inland Mortgage Corp. to refurbish the seven 63-year-old and 49-year-old buildings that comprise the 228-unit Collins Park Apartments in the rejuvenated South Beach district.
The bridge loan is for 18 months with one six-month extension. The interest rate is prime plus 1.5 points.
G2 Development plans to invest $2 million in the renovations of the 100%-leased structures that have a total 106,000 sf of net rentable space.
They are at 2000 and 2030 Park Ave.; 430--12th St.; 420 and 435--20th St.; 450--21st St.; and 2035 Washington Ave. The buildings were constructed between 1939 and 1953.
The vintage art deco-themed buildings have 175 efficiency units; 48 one-bedroom, one-bath units; and five two-bedroom, two-bath units. Inland is funding the bridge loan at 98% loan-to-cost and 80% of the property's post-renovation stabilized value.
"We provide borrowers with the maximum leverage for value-added transactions," Inland Mortgage senior vice president Leslie Lundin says in a prepared statement. "The South Beach area is going through a major transformation and the renovations we are funding will ultimately add value to these properties and to the entire neighborhood."
By improving the property to class B from class C status, "the owner will see rent increases of 40% over current rents in place," Lundin says. The loan is Inland's third in past 12 months on South Beach properties.
Tony Kolomayets of Boston-based Tremont Realty Capital represented the borrower. Inland Mortgage Capital is part of the Inland Real Estate Group, one of Florida's heaviest investors in retail properties over the past two years.
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