LAGUNA NIGUEL, CA-A joint venture of Jacksonville, FL-based Montecito Investments and Merrill Lynch Capital has landed a $77.5-million loan for the acquisition of a 280-unit apartment complex and plans $3 million in renovations to prepare the property for conversion to condominiums. The property is the Country Club Villas, which is just off Crown Valley Parkway at 30902 Clubhouse Dr.Greg Pappas of the Houston office of Holliday Fenoglio Fowler, which arranged the financing, says HFF secured the two-year, adjustable-rate loan through Corus Bank. He notes that Key Realty Group of Miami will help in marketing and selling the condominiums.Country Club Villas, which includes 230 two-bedroom units and 50 one-bedroom apartments, was 93% occupied at the time of the sale. The JV anticipates that the average asking price will be $439,244 per unit, well below the median sales price being achieved in the local market area, Pappas says."We expect demand for these homes to be strong due to the dynamic job growth, demographics and quality of life in Orange County," Pappas says. Montecito Investments is an integrated real estate company that acquires, repositions and manages apartment communities for conversion to condominiums.The Country Club Villas financing was one of two that Holliday Fenoglio Fowler closed recently for condominium conversions in Southern California. In the other, Mark Wintner of the Los Angeles office of HFF reports that it closed an $11.6-million loan for the Woodlands Apartments in the Loma Linda area of San Bernardino County.The Woodlands is a 69-unit complex on 6.3 acres at 1965 Coulston St. that is owned by Woodland Condominiums LLC, for which Wintner secured a one-year, adjustable-rate loan through Merrill Lynch Capital. The financing provides 90% of the total capitalization "without having to give any equity participation to the lender or having to obtain mezzanine financing, which reduced the borrower's cost of capital," Wintner points out.The 69 units average 1,164 sf and include two- and three-bedroom floor plans. Features include one- or two-car garages, private patios, community access gates, a fitness room, a pool and a spa. The borrower is planning upgrades including roof repair, paint, carpet, counter tops and appliances, with the work to begin in approximately two months.