Apartment Complex Converting to Condos

BELLEVUE, WA-The 57-unit Richmond Apartments complex across from the Crossroads Mall here is being converted to condominiums. A trio of local investors operating under the LLC Richmond Alliance Investments is using a two-year, $6.8-million floating-rate loan to purchase, renovate and re-trade the units individually.Completed in 1986, the 2.2-acre property includes four structures: three, three-story apartment buildings and one recreation building with an exercise room and outdoor pool and spa. The apartment buildings hold 12 one-bedroom, one-bath units and 45 two-bedroom, two-bath units.The purchase price for the property was $5.2 million. The remaining $1.5 million of the loan will be used to renovate the property and pay commissions on sales. At $6.8 million, the investors all-in cost is just under $120,00 per unit.Locally based HomeStreet Bank provided the financing. The loan floats 2.25 percentage points over LIBOR. On Wednesday, LIBOR rose 30 basis points and stood at 1.43% .Renovations will include new kitchen appliances, cabinets and countertops and lighting, new washer and dryers, new carpet and paint for the units as a whole. In addition, all buildings will receive new roofs.Loan office Tom Meunier tells GlobeSt.com the investors have four projects being financed by HomeStreet Capital (through DUS loans) and have been successful with several conversion projects.