BOCA RATON, FL-A joint venture between affiliates of locally based Coral Realty Group LLC and Chicago-based Falcon Real Estate Investment Co. LP has acquired the 35-acre, 522-unit Boca Palms multifamily complex for $101.9 million or nearly $195,211 per unit. The seller is King of Prussia, PA-based Morgan Properties. The new owner plans a condo conversion with units selling in the $300,000 range.
The 35 buildings in the complex, which is located at 9860 SW Third St., were constructed in stages between 1973 and 1991. Units range in size from one-bedroom layouts of about 1,000 sf to three-bedroom units of approximately 1,600 sf, Ilyne Mendelson, VP of Coral Realty, tells GlobeSt.com. She confirms that renovations are planned, but declines to provide costs or specific plans.
The Singer & Bassuk Organization of New York City arranged just over $91.7 million in funding for the acquisition. The mortgage, provided by Marc Young and Mike Cotler of Needham, MA-based CW Capital, "is for a three-year term," Andrew J. Singer, chairman and CEO of SBO, tells GlobeSt.com. He declined to disclose the interest rate.
Hurricane Ophelia, which arrived off Florida's Atlantic coast on the heels of Hurricane Katrina's devastation of the Gulf Coast, threatened the "time-of-the-essence" loan transaction on the final day of the contract and the day the closing was scheduled, Kathleen McSharry, SBO's senior managing director, tells GlobeSt.com the casualty insurer refused to provide insurance that would cover potential storm damage from Ophelia and the closing had to be delayed. "We all assumed it would pass within a day, but Ophelia stalled off the coast for five days. We learned more about meteorology than any mortgage broker, real estate person or lender should need to know." Once Ophelia moved far enough to the north for the insurance companies to issue proper certificates, the loan was closed.
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