(To read more on the multifamily market, click here.)

LONGWOOD, FL-RB-Gem Management LLC of Miami, one of Florida’s most active condo converters, has paid a premium $200,280 per unit and a total $71.5 million for 357 combined units. The assets are Golfbrook Apartments and Sabal Park Apartments, both located within the Sabal Point Golf Course and Country Club here. The seller and original developer of the properties was Louisville, KY-based NTS Development.

The Orlando and Atlanta offices of CBRE/Melody Capital Markets brokered a total $74.8 million in acquisition and conversion cost loans for the buyer through Fremont Savings & Loan of Brea, CA. The two loans are interest-only for 24 months and non-recourse, which means the properties are the collateral for the loans and the buyer won’t be held responsible if the loans are not paid. Dennis Jiminez in Orlando and Richard Jordan in Atlanta were the CBRE/Melody brokers in the financing deal.

“It was a very good situation for the buyer because it meant he didn’t have to go out and get mezzanine financing,” Jiminez tells GlobeSt.com. “The financing part of this deal went very fast, from late November 2005 to January of this year when the funds were committed and the closing just now.” The loans carry a floating interest rate over 30-day Libor and equate to about 83% of the total acquisition price, according to the mortgage broker. Sale of the converted condos is expected to start in May. Prices are still being worked out.

Fremont provided about $60 million in senior first mortgages at closing with an additional $4 million to be advanced at a later dates to cover property renovations and loan carrying costs. RB-GEM will be receiving total financing of $39 million for Golfbrook and $25.75 million for Sabal Park Apartments.

This was RB-GEM’s 10th condominium conversion project undertaken in the Orlando area during the past 18 months, Jiminez tells GlobeSt.com. “As housing values continue to appreciate, RB-GEM foresees continue strong demand for residential condominiums and is actively seeking additional conversion opportunities throughout Florida,” the broker says.

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