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September 2, 2010 |
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| November 17, 2009 |
By: Wayne Tompkins |
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Alfred G. Smith and Harold E. “Ed” Patricoff Jr.
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Dealmakers: Harold E. “Ed” Patricoff Jr. and Alfred G. Smith
The Deal: The Shutts & Bowen partners helped APR Energy, a Jacksonville-based developer of emergency and temporary power plants, finance and supply a fast-track power substation in Francistown, Botswana, the second-largest city in the landlocked southern Africa nation.
The $40 million deal between APR and the Botswana Power Corp. will pave the way for a facility that generates 70 megawatts of power.
Details: Botswana, like most of its southern Africa neighbors, is grappling with a national power generation shortfall. Power is vital to Botswana’s diamond industry, the catalyst for its economic growth and, arguably, its political stability in 42 years of independence from Britain.
Since 1967, its per capita annual income has risen from $80 to $6,000, making it one of Africa’s most prosperous countries. As demand for diamonds returns in these early stages of a global recovery, the energy needs to supply that demand are urgent — hence the need to insert a fast-track power supply into Botswana’s existing grid.
Adding to the urgency was neighboring South Africa’s decision to stop supplying Botswana with electricity after the end of this year, in order to meet its own rising domestic demand.
“They needed it on a rush basis,” Patricoff said of Botswana. “That’s one of the things our client specializes in, turnkey power plant operations in very short periods of time to be able to produce large quantities of power.”
With time of the essence, the attorneys needed to negotiate the agreement and get it into place and then also get the power plant up and running. They arranged letters of credit and drafted and negotiated the power supply contract. The deal closed Aug. 18.
“We fully expect to be online in January,” Patricoff said.
The niche market that APR serves is going to continue to grow, as Third World countries continue to develop, Patricoff said. “They’re going to need power.”
Many of these countries can not afford to build full-scale power plants, which cost billions of dollars and take years to build.
“This story will repeat itself,” Patricoff said. “You’ll see it in South America, you’ll see it in Africa and Asia, in any large country with an emerging middle class.”
APR won the job after a rigorous bidding process.
“We were chosen because we were the fastest and the least expensive provider,” said Eric Sean Kennedy, APR’s senior vice president. “This is a massive, fast-track project in a landlocked country.”
The deal follows a $45.5 million contract earlier this year to supply 60MW of power to Peru and over $60 million contract signed in Costa Rica late last year to supply 90MW of power to the northwest coast, both of which also involved Shutts.
The law firm recently worked with APR Energy to form a partnership with Levant Capital of Dubai to bring $30 million in investment capital to the company to aid APR’s expansion.
Background: Patricoff chairs Shutts & Bowen’s international practice group. Smith is attached to the corporate and securities department, where he practices in the areas of securities, mergers and acquisitions. Both partners work in Shutts & Bowen’s Miami office.
Botswana Power was represented by Neill William Armstrong of Armstrong’s Notaries & Conveyances in Gabarone, Botswana.
— Wayne Tompkins
Alfred G. Smith and Harold E. “Ed” Patricoff Jr. photo by A.M. Holt
Attorney helps investor win bid for 115 condos
Dealmaker: Daniel Kaskel
The Deal: Kaskel represented Israel-based investor Dizengoff-Trading Group in its $6.86 million purchase of 115 units at the Condominiums at Courtney Park in Lake Worth. Dizengoff, operating as Dizengoff-Courtney Park, is a real estate development and commodities firm. This is the second bulk condo purchase by the firm since September, when it paid $6.88 million for 118 units at Portofino at Jensen Beach.
Details: For a deal in which seller Bank of America had many suitors, Kaskel said he had to emphasize Dizengoff’s track record to bank executives.
The lender took title to the units in a March foreclosure sale. Prior owner Marcliff Courtney Development sold 77 condos at the 5080 Lantana Road complex but were foreclosed on by the bank for the remaining units.
Dizengoff, which closed on the purchase last Thursday, plans to operate the 115 units as rental apartments.
He was not sure if Dizengoff made the highest offer for the Courtney Park units, but said he suspects that his client’s ability to close was a factor. Kaskel said the firm’s successful bid for the Jensen Beach units two months earlier likely convinced the bank to accept the $59,692 per unit offer, Kaskel said.
“It was competitive,” he said. “The bank had the property listed and other parties were looking at it. But [bank executives] knew Dizengoff could make it to the closing table.”
Dizengoff paid cash for the Courtney Park units, but the firm is speaking with different lenders about obtaining financing.
Altman Management of Fort Washington, Pa., has been hired by Dizengoff to operate the rental apartments.
Background: Kaskel is chairman of the real estate practice group at Boca Raton-based law firm Sachs Sax Caplan.
Broker secures loan for artist office/studio
Dealmaker: Joseph Hepp
The Deal: Hepp represented an artist who obtained a total of $1.67 million in loans backed by the Small Business Administration to purchase and renovate a warehouse in the Miami Art District.
Details: Over about six weeks, Hepp was able to secure a first and a second mortgage totaling $1.67 million from the Boca Raton-based First Southern Bank, which financed the $1.57 million acquisition of an 18,000-square-foot warehouse at 2215 NW First Place in Miami. Part of the loan proceeds will help pay for $1.5 million in property improvements.
Most lenders in South Florida have not been willing to finance more than 65 percent to 75 percent of a property’s value.
The first mortgage of about $933,000 has a five-year term at 6.75 percent interest. The second mortgage of about $746,000 has a 5.39 percent interest with a six-month adjustable term and a 20-year amortization.
Hepp declined to name the borrower but described him as a Cuba-born, contemporary artist — a painter, sculptor and photographer — who lives in Delray Beach.
According to Miami-Dade County public records, the warehouse was purchased on Nov. 9 by Madrid GSA LLC, which is solely managed by artist Enrique Martinez Celaya.
The 45-year-old artist will use the property as a studio, private gallery and office, according to Hepp.
Background: Hepp is an associate at Dockerty Romer & Co., a commercial mortgage banking and real estate brokerage based in Delray Beach.
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