Lender Tyko Capital, led by Adi Chugh, has provided the largest construction financing in Florida's history to date. Developers Fortune International Group and KAR Properties secured an 817 million dollar loan for the Faena Residences residential scheme on the banks of the Miami River.
At 24 Southwest Fourth Street, opposite Brickell City Centre, two 68-storey skyscrapers comprising a total of 434 condominiums are being built. The design for the 1.8-acre site was drawn up by Rafael Viñoly Architects, with completion scheduled for 2030. According to the developers, off-plan sales have already exceeded 500 million dollars, including a penthouse sold for 30 million dollars.
Record volume in South Florida's luxury segment
Edgardo Defortuna, President and CEO of Fortune International Group, stated that the transaction demonstrated strong confidence in the development and sustained global demand for prime real estate in Miami. At 817 million dollars, the transaction surpasses the previous state record held by Stephen Ross, who had secured 772 million dollars in construction loans for two Class A office buildings in West Palm Beach.
The site has a longer history. New York-based KAR Properties acquired the property in 2013 and launched an initial sales push in 2015, although construction did not start at that time. In 2022, Defortuna joined the scheme as part of a 58.8 million dollar partnership. In 2023, Bank OZK had already provided a 38 million dollar loan for groundworks and marketing activities.
Brand expansion and active lenders
The Faena brand was established in 2000 by Alan Faena and billionaire Len Blavatnik. Alongside hotel and cultural facilities in Miami Beach and locations in New York and Buenos Aires, the scheme in Downtown Miami marks the brand's first purely residential project. The debt package was arranged by a team from brokerage Walker & Dunlop, including Michael Stepniewski, Keith Kurland, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer and Sean Bastian.
- —Project scope: Two 68-storey towers, each comprising 217 condominiums
- —Financing volume: 817 million dollar construction loan provided by Tyko Capital
- —Sales status: Off-plan sales exceeding 500 million dollars prior to the start of construction
- —Completion timeline: Planned handover of units in 2030
Despite elevated interest rates, institutional lenders continue to provide substantial debt capital for luxury residential schemes in South Florida, provided sound pre-sale rates are achieved. Only recently, Fortune International and Château Group secured 463 million dollars for the completion of a tower at the St. Regis Residences in Sunny Isles Beach. Tyko Capital, backed by Elliott Management, is also financing other major schemes in the state, including the Bentley Residences in Sunny Isles Beach and a convention hotel in Miami Beach.
