Wrightwood Arranges $6M for Conversion Property

(To read more on the debt and equity markets and the multifamily market, click here.)

SAN DIEGO-Chicago-based Adams LaSalle Realty and locally based Sand & Sea Capital have acquired the Crown Tower Apartment building in a joint venture. In closing the deal, Wrightwood Capital, a Chicago-based firm, arranged $6.2 million in financing.The play is one of many for the partnership of LaSalle and Sand & Sea Capital, who together have acquired more than 13 condo conversion projects totaling approximately 250 units. Upgrades to the interior and exteriors are planned for the property. The Crown Tower apartments, which were built in 1971, is a three-story building consisting of 18 units. Twelve of the units have two bedrooms while the remaining six are one bedroom, ranging in size from 800 sf to 1100 sf. All of the units have balconies and several have ocean views.”The proximity of this property to Mission Bay and its views, along with the improvements the sponsors will make, should improve to be competitive advantages when this property is marketed,” says Jason Choulochas, regional director for Wrightwood Capital. Although condo conversion projects continue to get the green light, there remains some skepticism, which was heard yesterday at the Hyatt Regency Century Plaza in Century City. The concern was heard at the day-long Real Estate 2006 conference.The annual conference and networking event is part of the RealShare Conference Series produced by New York City-based Real Estate Media, Real Estate Forum, GlobeSt.com and Real Estate Southern California.During one of the panels Greg Rikard, senior vice president with the Los Angeles office of KeyBank Real Estate Capital noted that condo conversions are slowing. He said that even a prime location is having little affect on prices.”We’re seeing very little separation in price on condo projects whether that project is in San Diego, Echo Park [in Los Angeles] or Hollywood,” Rikard said. “We think that’s a disconnect; we think product should be priced more based on geography.”