A joint venture between the two Miami-based developers Terra and Fortune International Group has secured a predevelopment loan amounting to 220 million US dollars. The capital is earmarked for the delivery of an exclusive waterfront residential scheme on the island of Key Biscayne near Miami. Blackstone Real Estate Debt Strategies is acting as lender for the project, the project partners officially announced.
The planned residential building at 301 Ocean Drive comprises 56 condominiums and offers direct views of Biscayne Bay. The island of Key Biscayne is situated in close proximity to the Brickell financial district. The 13-storey new build will replace the historic Silver Sands Beach Resort, which was built in 1956 and featured 56 rooms.
Site acquisition and key construction details
The consortium had already acquired the 3.8-acre site last year for a sum of 205 million US dollars. The necessary planning permissions for the new build have now been granted, with features including an underground car park providing 221 spaces. The launch of sales for the planned residential units is scheduled to take place within the current year.
A team from brokerage firm Walker & Dunlop was responsible for structuring and arranging the debt facility. The team included Keith Kurland, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer, Jordan Casella, and Nicholas Gilhooley.
High financing activity in South Florida
The new facility follows a series of substantial deals recently announced by both developers in South Florida. Fortune International Group, led by Edgardo Defortuna, recently secured 817 million US dollars for the construction of the Faena residential scheme in Downtown Miami, representing the largest construction financing volume in the state of Florida to date. In addition, the firm raised 463 million US dollars for the completion of a St. Regis residential tower in Sunny Isles Beach.
Terra, headed by David Martin, also completed a notable transaction recently. The developer succeeded in closing a 507 million US dollar construction loan for an apartment tower on the Miami Beach waterfront before sales of the units had officially commenced. Such an arrangement is considered exceptional in the regional market environment.
