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SCOTTSDALE, AZ-A partnership has obtained $15.86 million to complete the conversion of the 442-unit Sunscape Villas Condominiums. The remaining 140 units are expected to sell within one year.
Crown Pacific Properties LLC of San Diego and Chicago-based Centrum Properties acquired the asset at 3500 N. Hayden Rd. in November 2005 for $53 million. They had budgeted $10,000 to $12,000 per unit for the conversion. “They've been converting units, selling them and paying down the financing,” says Cheri Grossman, regional director of investments for Chicago-based Wrightwood Capital, which provided the new capital.
Grossman tells GlobeSt.com that the floating-rate bridge loan has a 12-month term and extension option. “They'll continue to sell the units and pay down the loan with their sales. Then they'll probably end up with a portion they'll own free and clear of debt to either sell or rent,” she explains.
Although the region's condominium conversion market has slowed down significantly from its heyday in late 2005 and early 2006, Grossman says it wasn't a concern for the lender. Both partners have been successful with similar projects in the past, which is what Wrightwood took into consideration. “This is a very experienced sponsorship group,” she explains. “This is a sponsor that understands what it takes to clear units in this particular market.”
Sunscape Villas has one- and two-bedroom units measuring from 698 sf to 929 sf. Prices begin at $175,000 per unit.
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