The price paid by Mark Kinchla and Richard Zahn was 63 percent higher than the $10.4 million the beachside property fetched just last summer.

Kinchla said he and his partner plan a complete makeover of the twin-building complex in order to operate it as a luxury rental property. He ruled out a condo conversion as a future possibility.

"We've already raised some of the rents to the $735-750 range for one bedrooms as a test of the market," he said. "After rehabbing, there will be some substantial increases."

The seven-story complex flanking the east end of the Seabreeze Bridge at 100-101 Seabreeze Blvd. previously was owned by Julian LeCraw & Co. Last August, when LeCraw bought the complex from Philadelphia-area investors, it said it was considering a condominium conversion but continued operating it as a rental property. Built in the early 1960s, the Diplomatic complex is among a shrinking number of waterfront properties still available for lease.

The new owners closed on the property Friday, said Ben Babazadeh, a real estate agent with Prudential Transact Commercial Realty who negotiated the sale for LeCraw.

Kinchla, with Winfield Construction in Orlando, and Zahn, with Hersh Inc. in Longwood, have both been active in condominium conversions in Orlando.

Kinchla said he tried to buy the Seabreeze property for an undisclosed price three years ago. He said the $17 million he ended up paying was still "a very reasonable price," considering the Diplomatic Towers' potential.

The remodeling will include new balcony railings, parapets and other exterior features to update the property's appearance, Kinchla said. "It won't look like the Diplomatic from the '60s anymore," he said.

tom.brown@news-jrnl.com

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