TAMPA, FL-Provident Management Co. LLC, a Chicago-based operator, manager and asset manager of 5,000 apartment units in 24 states, has made its second Florida acquisition with the $11.5-million purchase of the 69-unit, 15-year-old Greens at Carrollwood community adjacent to the Carrollwood Village Golf Club. Provident plans $1 million in renovations.
Provident, headed by principals Alan Pollack and Bruce LaMotte, paid Tampa-based Ehrlich Road Properties $166,666 per unit for the 90%-leased asset at 3810 Ehrlich Rd. The rent range is $900 to $1,500 per month. Provident purchased the Lakeside Village apartments in St. Petersburg earlier this year.
Todd F. Cohen, director, Orlando office, Primary Capital Advisors, arranged the financing package for Provident with Compass Bank. The two-year loan's interest rate starts at 5.5% and floats to the Libor rate, Cohen tells GlobeSt.com.
"The acquisition and renovation financing package that was structured will also allow for the conversion to condominiums, should the developer decide to take advantage of this market phenomenon any time in the next two years," Cohen says. The funding deal took 55 days to complete.
Primary Capital brokered the transaction largely because of its association with Provident, Cohen says. Other mortgage bankers and lenders also sought the assignment. "This deal was bid very aggressively by several other lenders," the broker tells GlobeSt.com.
Provident principals Pollack and LaMotte have been in the apartment management and financing business since the late 1970s, overseeing a total 50,000 apartment homes in various portfolios over the last 35 years.
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