The 16-story complex was built in 1967 and then renovated in 2000 by Home Properties. When the building traded again the new owner made additional improvements in anticipation of converting the property to a condominium. By 2007, these plans had ground to a halt leaving the building half-finished and less than half-occupied.
The property is currently 45% occupied, with the remaining 55% in various stages of renovation. FCP will finish the renovations and begin units for rent in three months. It plans to invest approximately $17 million to complete the project. Renovations will include granite countertops, wood flooring, new appliances, common area upgrades such as meeting rooms, a library, a professional fitness area and an entertainment center.
"Access to capital and experience repositioning high-rise apartments allowed us to structure a deal that appealed to the senior lender, the mezzanine lender, and contractors left stranded by a failed condo conversion," says Lacy Rice, and FCP Partner. "It helped that none of the apartments ever sold as condominiums and that a substantial part of the property was renovated to class-A condo standards." As part of the transaction FCP purchased the first deed of trust from an affiliate of I-Star Financial and the deed of trust from an affiliate of CBRE Realty Finance.
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