The partners plan to convert the 92%-occupied apartment units into 251 two-bedroom and three-bedroom homes and rename the property Ocean Grove. The average size of the individual units will be about 1,000 sf. Arbor Club rents average $940 per month.
The site is off Highway A1A and adjacent to the professional Tournament Players Club's Sawgrass Stadium golf course, near Jacksonville. Perimeter Realty will manage Ocean Grove. Steve Lear with Wachle Real Estate Co. was the sales broker.
Todd F. Cohen, manager of Primary Capital Advisors' Orlando office, arranged the three-year acquisition and conversion loan at an 80% loan to value factor. Debt was arranged at about 2.25% over the Libor. The property was on the market for less than 30 days. The deal was done at this time "to take advantage of low interest rates on the end loan side and maximize profits," Cohen tells GlobeSt.com.
Cohen says Primary Capital has arranged financing for Prospect on previous transactions. "They came to me as a result of my understanding of the condo conversion and apartment business and strong investor relationships," Cohen tells GlobeSt.com.
Perimeter owns and manages 1,500 multifamily units and over a million sf of commercial space in Florida and Georgia. Prospect Capital Group is a private real estate investment company founded in 1995. The companies together have managed and developed over $800 million of condominiums and multifamily housing in the Southeast and Northeast. The partners began their condominium housing development programs in 2003.
Coldwell Banker the Condo Store is the exclusive sales and marketing agent for Ocean Grove condominiums.
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