Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORLANDO-With $150 million in commercial closings for the first 10 months of the year and another $150 million set to close by year end, the local office of Atlanta-based Primary Capital Advisors moved closer to its $300-million goal for the year with the brokering of two Central Florida transactions for a total $10.5 million. Primary Capital closed $175 million in funding deals in 2004.

Epic Orlando LLC received a $3.5-million loan from Atlanta-based Cornerstone Bank to fund its $3.85-million acquisition from Pennsylvania-based National Leisure Group of the Cruises Only Building. The 35,000-sf, 45-year-old Downtown Orlando office building is at 1011 E. Colonial Dr. The interest rate will float over the prime with a starting rate of about 7%, Todd F. Cohen, director, Income Property Capital Group in Orlando tells GlobeSt.com.

The loan represented 85% of the total purchase price which equates to $100 per sf. Cohen calls the per-sf price “a significant discount to replacement cost” of a comparable property. The funding deal took 45 days to complete, from application to closing. Epic plans to renovate the property and re-lease the premises to a mix of office and retail tenants.

In suburban Tampa, Primary Capital arranged a $7-million mezzanine loan for a private investment partnership from New York on its $53-million purchase of Allegro Palms. The 452-unit class A condo conversion property is at 3501 Legacy Crescent Pl. in Brandon. MMA Realty Capital of Atlanta provided the funds for the borrower who also had taken out a $45-million first mortgage with another lender. The price equates to about $117,257 per unit.

The total debt ratio on the property, including the mezzanine loan, was 90%. The Brandon loan will float over Libor with a starting rate of about 7%. The funding deal took 30 days to complete, from application to closing. The property was formerly called Alexan at Crescent Place.

Primary Capital has arranged financing totaling $250 million on statewide condo conversion projects in the past 24 months, Cohen tells GlobeSt.com. He sees no immediate halt to the volume of condo conversions taking place in Orlando, Tampa, Jacksonville and Miami.

“With the incredible population and wage growth continuing in the Central Florida area and around the state, the residential real estate markets should be able to continue growing, with some sort of a slow leveling off of the tremendous double-digit price increases growth of the recent past,” Cohen tells GlobeSt.com. He adds, “As long as long-term rates stay relatively low, such as under 7.50% mortgages, the conversion market should continue.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.