The Orlando office of Atlanta-based Primary Capital Advisors arranged an approximately $6.6-million, interest-only, two-year acquisition and construction loan at an interest rate of 2.5% over Libor from AmSouth Bank for the project.
The loan-to-value factor was 90% of all costs. The seller was a private owner who received about $36.73 per sf for his single-family home property at 2801 Hill St. The deal took only 90 days to complete, from contract signing to closing.
Todd F. Cohen, Florida manager of Primary Capital's Income Property Capital Group, tells GlobeSt.com the hard and soft construction costs of the Wave "will be well above $200 per sf in all, due to the high level of finishings on the project." Average living areas are 1,800 sf to 3,000 sf on private floors. Occupancy is expected by year end 2005. Ocean Properties in New Smyrna Beach is handling sales.
"The unit interiors will include some of the finest finishes available and will be a smart house, wired for data, entertainment and security," Cohen says. "Once completed in about nine months, the Wave will raise the bar for other projects up and down the east coast of Florida."
Cohen doesn't think New Smyrna Beach, two miles south of Daytona Beach, is overbuilt with condos. "No way," the broker tells GlobeSt.com. "Rates are low which will keep demand high. It is underbuilt, in my opinion, as absorption remains high."
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