Integral Partners Pounces on Palermo Condo Conversion Opportunity

SAN DIEGO-Integral Partners has sewn up its acquisition of the brand new Piazza Palermo multifamily complex in the Little Italy neighborhood of Downtown in a transaction that began while the asset was still under construction.The buyer purchased Piazza Palermo from developer Barone Galasso, which had commenced construction on the project in July 2002. Originally slated as an apartment complex, the property has been converted to condo product under Integral Partners’ direction. Since the asset was still unoccupied when Integral Partners entered into escrow, the firm was able to obtain a map waiver that allowed for the repositioning of Piazza Palermo as a condominium complex. “Terms of the acquisition required that the seller complete the improvements prior to closing,” according to a statement released by Fremont Investment & Loan, which financed the purchase on behalf of Integral Partners. According to Fremont’s officials, “during the ensuing four months, Integral Partners completed all DRE approvals and executed sales contracts on the majority of the residential units.”Fremont furnished Integral Partners with $56 million in financing, which equates to an approximate 80% loan-to-coast. The capital has also aided with the upgrade of the units and project amenities, as well as the cost of the DRE processing. A portion of the loan has also funded the marketing and closing efforts though the sales period at Piazza Palermo. Located at 1501 Front St., Piazza Palermo is on a site bounded by First Avenue and Front, Beech and Cedar streets. Standing six stories high, the project contains 230 residential units and 300 parking spaces.