The local office of Atlanta-based Primary Capital Advisors structured a three-year, interest-only, $17.5-million bridge loan for Kinchla to cover acquisition, renovation and conversion of the strategically located property near the historic Delaney Park neighborhood and a half mile south of Downtown. Lake Pineloch is one of the largest water-skiing lakes nearest to Downtown.
Todd F. Cohen, Primary Capital's Florida manager, Income Property Capital Group, coordinated the equity and debt financing through Merrill Lynch Capital. "We closed in 45 days, from signed loan application to completion," Cohen tells GlobeSt.com.
The 5%-interest loan has a loan-to-value ratio of 144%. Cohen says he ran into no competition on the transaction. "The challenge was the project's size and leverage requirements, and the age of improvements with respect to renovations," the broker says.
Kinchla plans to renovate the interior and exterior of La Costa Brava in converting the property to condominium units. He says prices will average under $150,000 per unit.
"The acquisition and construction financing package that was structured will allow people to purchase (the units) at very attractive prices, compared to other condo projects (being completed or under development) near Downtown," Cohen tells GlobeSt.com. "With residential mortgage rates at historically low levels, the homebuyer's mortgage payment will be less expensive than rent at many Downtown apartments." Cohen structured the debt for the transaction and also raised the private equity to complete the deal.
Kinchla's credentials include the recent redevelopment of the 90-unit Lakeside at Delaney condominiums in Delaney Park and the current construction of Newton Corner, a mixed-use project just north of Michigan Street near Downtown. Locally based Smith Equities Corp. represented Kinchla in the transaction.
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