The buyer, an affiliate of Orlando-based Hersh Construction Co., paid Chicago-based Equity Residential Properties $56,299 per unit for the 99%-leased property.
The Orlando division of Atlanta-based Primary Capital Advisors arranged a $15.8-million, two-year bridge loan with an affiliate of Merrill Lynch Business Financial Services to cover the acquisition price and the planned $5-million renovation of the property. The interest rate on the loan starts at 6%.
"We were able to structure this interim loan at 90% of all acquisition and development costs, which resulted in limited cash outlays from the developer," Todd F. Cohen, director of Primary Capital's Orlando office, tells GlobeSt.com. "This will allow my clients to conserve cash for that next great deal."
Cohen says the funding deal took 45 days to complete, from contract signing to closing. Prices of the converted units will start in the $120,000s, according to the development team of ZMG, Hersh and developer Mark Kinchla. The team has developed La Costa Brava and Lakeside at Delaney, both Downtown apartment complexes converted to condominiums.
The Orlando office of Primary Capital Advisors has closed about $75 million in Central Florida transactions this year and has over $100 million in the pipeline scheduled to close by June. The Orlando office did about $175 million in transactional volume for all of 2004.
"We are about 50% ahead of last year at this time, with a pipeline of 100% more business versus 2004," Cohen tells GlobeSt.com. Primary Capital's Atlanta and Orlando offices posted about $1.5 billion in transactional volume last year.
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