NAPLES, FL-Cornerstone Development Group has paid $80 million, or $175,439 a unit, for Fountain View Apartments. It obtained a loan of just under $69.8 million to acquire and completely renovate the 20-year-old property and convert the 456 units to for-sale condos.
Orlando Camps, president of the Coral Gables-based condo conversion division of Cornerstone Group, tells GlobeSt.com the renovation will include all new, upgraded kitchens and baths, carpeting and "complete refurbishment of the exterior and interiors, including landscaping." Units will sell for between $216,000 and $321,000, he says, and adds that he expects to sell one-quarter of the units within the first eight months.
The complex is located at 2602 Fountain View Circle and is approximately 95% occupied. It consists of 29 two-story buildings with an aggregate of 468,548 saleable sf. The 38-acre asset also contains 859 parking spaces, a pool and a clubhouse.
Chicago-based Corus Bank, a subsidiary of Corus Bankshares Inc, provided the loan. It has a 24-month term with an option to expand it for an additional six months, Dwight Frankfather, the Corus first VP who handled the transaction, tells GlobeSt.com. "Despite damage from recent hurricanes at the project site, which had to be addressed, we were able to meet the borrower's time constraints," he says, crediting Cornerstone principals Jorge Lopez and Camps as "sophisticated and sedulous underwriters of their own deals."
Cornerstone created a condo conversion unit, its eighth affiliated division, this March and named Camps president. The division operates as an independent business unit. In August, it acquired the Inn on the Beach in Daytona Beach to convert it into the Bella Costa condo hotel.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.