MIAMI-Southcoast Partners has obtained $27 million in financing to fund its purchase and planned improvements of the 200-unit Highland Beach Club condominium conversion project here. Sandstone Realty Advisors, a real estate advisory firm that specializes in real estate investment and finance, arranged the senior and mezzanine debt financing.

“We completed the entire financing at warp speed, in less than 21 days, unheard of in today’s finicky capital markets,” Jim Fried, industry veteran and president of Sandstone Realty Advisors, says.

GE Real Estate provided the first mortgage, and South Charles Investment Corp. was the provider of the mezzanine financing. Besides buying the inventory, the money will finance improvements to the asset, including upgrades to some of the common areas and units, Fried tells He did not disclose the specific breakdown of purchase and improvement costs.

The property, located at 3600 S Ocean Blvd. in Highland Beach, FL, has some history to it. It originally was built by The Related Cos as a luxury rental apartment community called the Yacht Club at Highland Beach. Later, Clarion Partners purchased it, then more than a year ago sold it to a group of investors that included Howard Scharlin. Beginning at around the end of 2000, Scharlin converted the project to condos.

“In the middle of the conversion, Howard [Scharlin] passed away,” Fried says.

Fried’s client, Southcoast Partners, purchased the property from the estate and is completing the sale of the remaining inventory. “Southcoast saw the inherent value of the transaction and created a capital structure that allowed them to maximize their yield,” Fried tells

Boca Raton, FL-based developer Southcoast Partners is headed by Bill and Scott Morris. The company specializes in urban in-fill commercial and residential development in the South Florida area.

Miami-based Sandstone helps real estate businesspeople grow their businesses by providing access to capital, managing the property sales process or producing solutions to real estate problems.

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