A joint venture led by Terra has secured US$507 million in construction loan financing for an exclusive waterfront residential tower in Miami Beach. This financing from Adi Chugh's Tyko Capital is noteworthy as it comes before sales of the residential units have officially launched.
The loan covers the development of a 28-storey building with 106 units at 1250 West Avenue. This project is located on the western waterfront of South Beach, overlooking Biscayne Bay. In a rather unusual approach for a luxury condominium in South Florida, pre-sales will only begin next year. Lenders typically require development projects to reach a certain level of sales before providing construction loan financing.
Strategic Project Development in Miami Beach
Adi Chugh commented on the transaction: "Miami Beach remains one of the most supply-constrained luxury markets in the country, and opportunities to build on the waterfront at this scale are rare." Tyko Capital's debt platform is backed by financial heavyweight Elliot Management. The new development replaces a 15-storey residential building constructed in 1964. Terra, under the leadership of David Martin, acquired the 238-unit building last year for US$120 million, as reported by "The Real Deal". Developer Michael Stern is no longer involved in the project.
To obtain approval for the 330-foot tall tower from Miami Beach authorities, the developers also acquired and demolished the Bikini Hostel across the street. This site is to be converted into a public park.
Amenities and Participants
The luxury condominium development, which currently has no external brand affiliation, will offer a range of high-end amenities. These include rooftop pools, underground parking, a padel court, and ground-floor retail space. The project expands Terra's presence in Miami Beach, where the company is already constructing an 800-room hotel next to the convention centre, having also secured US$392 million in financing from Tyko Capital. In 2024, the company completed Five Park, a 48-storey luxury residential tower near the entrance to the MacArthur Causeway.
Project partners include GV Development, the firm of Italian influencer Gianluca Vacchi, LORE Development Group, a Miami-based partnership between the Leste Group and the Brazilian real estate fund Opportunity Fundo de Investimento Imobiliário, and Rafi Gibly's RG Development Group. This ensemble underscores the international and well-capitalised nature of the undertaking.
