GK Real Estate, a sponsor of non-traded direct investment offerings, has fully subscribed its Regulation D offering, DeMarcay Development Preferred Partners LLC, after raising $15 million from accredited investors.
DeMarcay Development Preferred Partners was formed to develop The DeMarcay, an 18-story condominium located on Palm Avenue in downtown Sarasota, Florida that will include 39 residential units and five floors of parking.
The developers plan to build the multifamily property above the former DeMarcay Hotel, which is on the National Register of Historic Places, and the Roth Cigar Factory, which was built around the same time. The company indicated that the two 1920s Mission Revival facades will be preserved, and construction is slated for completion by Fall 2021.
“This is a unique venture as we are preserving the façade and some of the original design elements of the historic structure yet creating an environment with all the modern amenities required by discerning residents,” said Greg Kveton, principal of development at GK Real Estate.
The property includes one-, two-, and three-bedroom units ranging from approximately 1,144 to 3,219 square feet, with prices starting at $660,000. GK Real Estate noted that the $3.1 million penthouse was recently sold.
Amenities include a rooftop pool, garden and clubroom, fitness facility, and Gulf of Mexico views for select units, and residents can walk to fine dining restaurants, art galleries, the opera house, and the marina.
Since 1995, the GK Real Estate management team has acquired, redeveloped, and managed a portfolio of office and commercial properties, and the company’s portfolio is valued at more than $500 million representing 5.4 million square feet. GK Real Estate sponsors Regulation A and Regulation D offerings, as well as tax advantaged offerings including Delaware statutory trusts and qualified opportunity zone funds.