$46M Funds Polo Glen Acquisition, Conversion

PLANTATION, FL-An entity identified as Bay Plantation LLC has obtained a $45.5-million bridge loan to acquire and convert Polo Glen, a 230-unit multifamily property at 7350 NW Fourth St., into for-sale units. The seller is Atlantic & Pacific Properties. Polo Glen was completed in 2003 and is currently more than 90% occupied.

Charlotte, NC-based Mountain Funding closed on the loan within two weeks, according to Peter Fioretti, CEO. "Fortunately, with this borrower we already have an established program with fixed pricing, due diligence and documentation that enables them to close these deals quickly." Mountain Funding has provided the same condo converter with nine loans over the past six months, Fioretti says.

"They like to jump on opportunities, which they win by offering hard deposits with short due diligence and quick closings," he explains. "We really liked this project and the Plantation market," he adds, noting it is a "densely-populated infill location in a town which has announced a number of civic and commercial programs to enhance the living and work experience of its residents." The bridge loan has an 85% loan-to-cost ratio.

The Polo Glen property includes two lakes, a clubhouse, pool, spa fitness center and volleyball, basketball and tennis courts. It contains one-, two- and three-bedroom units, most of which have private attached garages. Current published rental rates range from $905 a month for a one-bedroom unit to $1,345 a month for a three-bedroom layout.

Pricing of the condo units "will average about $300,000 and range from the high $200,000s to the low $300,000s," Arthur Nevid, Mountain Funding's managing director of acquisition and lending, tells GlobeSt.com. "This buyer has a great track record for identifying good locations and paying a little high with a hard deposit in order to take full advantage of the current condo craze."