WEST PALM BEACH, FL-In his second multifamily acquisition from the Felix Granados Family Trust within the past four months, Hector Hernandez has acquired the 386-unit Palm Hill Apartments at 5101 Palm Hill Dr. As with his recent Fort Lauderdale acquisition from the same seller, he will convert Palm Hill into for-sale condos.
Hernandez is a private investor and the owner of Great Company Home Loans, a provider of FHA mortgages, which enables him to offer financing to condo buyers. Charles Foschini, senior director of CBRE Melody's South Florida office, and Christian Lee, EVP of the CBRE institutional group, both in Miami, arranged an acquisition and financing loan of just under $36.7 million for the deal. Foschini tells GlobeSt.com the lending is for a two-year term with extension options and represents 90% of the borrower's cost. He declined to disclose the interest rate.
Palm Hill is located two miles west of the intersection of Interstate 95 and Forest Hill Boulevard near the CBD and newly revitalized Downtown area. It was built in the mid-1970s and is more than 90% occupied. The published rental rates begin at $535 a month for a one-bedroom unit and $645 a month for a two-bedroom layout. Foschini says conversion is expected to begin within 90 days. The pricing, while not yet set, "will be affordable," he says.
In mid-October 2005, Hernandez acquired the 230-unit In Apartment complex near Fort Lauderdale's CBD from the Granados family trust and plans condo conversion at an all-in cost of $23 million.
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