The 96%-leased, three-story townhomes at 4455 E. Paradise Village Pkwy. South were developed and sold by San Francisco-based BRE Properties Inc. The acquisition cost was $34.7 million, according to Scott Lisman, an investment officer with CapitalSource's headquarters office.
Lisman tells GlobeSt.com that the loan, arranged by Holly Minter of LJ Melody & Co.'s Houston office, is a typical two-year bridge facility with a floating rate over Libor. The loan covers 70% of the acquisition and renovation costs. He estimates the conversion will cost $2.5 million to implement over the next six months for a plan aimed at upgrading the clubhouse and fitness center, landscaping and unit interiors.
Positioned on 7.5 acres, Pinnacle at Stonecreek is comprised of 91 one-bedroom townhouses, 127 two-bedroom designs and eight three-bedroom units. The average townhome is 1,061 sf. Monthly rents are running slightly more than $1 per sf.
"The big selling point for the deal was the fact that Pinnacle at Stonecreek is a complete townhome community, which differs from other typical condo conversions of garden-style complexes," Lisman says. "It will feel like people are buying a home since eachtownhome has a garage." He adds condos in the area sell for $200 per sf to $240 per sf. Lisman says the Phoenix deal is the third loan that CapitalSource has provided to Jacksonville Beach, FL-based Montecito Investment Co. "We knew the company and the kind of projects they do," he says, pointing out CapitalSource was able to close the transaction within the 30-day contract period.
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