Related Lands $400M For Luxury Condos On Exclusive Fisher Island
Related Group locked in a $400M construction loan to build a luxury condo project at the last development site on the ultra-wealthy enclave of Fisher Island.
New York-based Madison Realty Capital provided the debt to build a 10-story property that has already amassed more than $500M in pre-sales, according to a release. Construction at 6 Fisher Island Drive is scheduled to start in the coming months and is slated to deliver 50 luxury condos in 2026 to the country’s richest ZIP code.
Related Group, Miami’s most prolific condo developer, is partnering on the Fisher Island project with Israeli billionaire Teddy Sagi, Miami-based BH Group and Chicago-based Wanxiang America Real Estate Group.
Sales launched in late 2022, and two of the property’s penthouses sold earlier this year for a combined $150M. The remaining units in the project — which, like the rest of the island, is accessible only by boat — are priced north of $4K per SF. Douglas Elliman is the exclusive sales agent.
“Fisher Island is a special place, unique in the world. Developing the island’s last parcel is a responsibility we do not take lightly,” Nick Pérez, president of Related's condo division, said in a statement. "Madison Realty Capital’s loan will allow us to fulfill our vision of further elevating the level of luxury and service of what is already one of the world’s most exclusive communities.”
The Residences at Six Fisher Island will be the first newly built property on the island since 2019. It was designed by Kobi Karp Architects with an average unit size of 4,817 SF. The Residences includes two resort-style pool decks, a sprawling playground, a sports simulator, a fitness center, a full-time concierge and 1,000 linear feet of shoreline on the northeastern side of the island.
The construction loan was arranged by a Berkadia team of Scott Wadler, Michael Basinski, Patrick Johnson, Mitch Sinberg, Brad Williamson and Matthew Robbins.
Related and its partners paid $122M for the 6-acre site in September 2022, and the new debt replaces an $85M acquisition loan, also originated by Madison Realty Capital.
“We are pleased to continue to serve as a single source of financing throughout the lifecycle of the development for an established borrower group with significant experience developing ultra-luxury residences that has already exhibited successful presales for The Residences,” Josh Zegen, co-founder of Madison Realty Capital, said in a statement.
Miami-Dade saw $780M in condo sales across 989 sales in May, down from $849M across 979 deals in April, The Real Deal reported using data from Redfin. The most expensive sale of the month was a $17.8M deal for a unit at Continuum On South Beach.
Relatively stable demand has led to a steady stream of new condo proposals, with around half the market targeting short-term rental investment units and the other half firmly in the luxury space.
Some developers are compensating for the high cost of debt by pivoting planned apartment projects into condos, which allows them to leverage buyer deposits to offset borrowing costs and prove that demand exists.
Related Group and New York-based GTIS Partners announced in April that a 506-unit apartment tower that is under construction was now the Viceroy Brickell, The Residences, launching sales starting at $600K for a studio condo.
The $400M loan from Madison Realty Capital is among the largest for a South Florida project this year. Mast Capital locked in the largest in February when it secured $600M to build the Cipriani Residences in Brickell.
