This Week’s South Florida Deal Sheet: Brickell Assemblage Refinanced For $104M
Ytech secured a $104M financing package for an assemblage that includes the planned site for The Residences at 1428 Brickell after more than 40% of the units in the condo tower in Miami's financial district were sold, the Miami-based developer announced.
Ytech locked in a $78M refinancing loan from Linkvest Capital, a lender with offices in Miami and Colombia, that replaces a $20M acquisition loan for the site.
Miami-based Banesco USA provided an additional $26M first mortgage to 1500 and 1548 Brickell Ave., which host Major Food Group's Chateau ZZ's and the Nolan House, which is the sales center for 1428 Brickell.
The 70-story 1428 Brickell is planned to include 189 residences, with standard condos priced from $2M to $7M and ranging from two to four bedrooms. A $60M penthouse with 30-foot ceilings, seven bedrooms and nine bathrooms is also available, along with lower penthouses that start at $8M.
Site work has begun ahead of a formal groundbreaking, and delivery is scheduled for 2027. Cervera Real Estate is handling sales.
Ytech paid $26.5M for the site in 2017, property records indicate. 1500 Brickell Ave. is owned by an entity controlled by Ytech CEO Yamal Yidios that paid $6.3M for the property in 2018. A Ytech entity purchased 1548 Brickell Ave. for $6M in 2021.
FINANCING
Bank OZK, the Arkansas-based bank that has been a prolific lender on South Florida projects, provided a $181M construction loan for a 41-story tower in Edgewater, Commercial Observer reported.
Oak Row Equities, which has offices in Miami and New York, secured the funding to build 2600 Biscayne Blvd. The tower is slated to include 400 apartments and 187K SF of commercial space, primarily offices, that is 50% pre-leased.
Related Fund Management, the investment arm of New York-based Related Cos., joined the project as an equity partner in July 2022.
The Arquitectonica-designed tower includes a 10-story base that spans the length of the property and will host the office space and be topped with an amenity floor and pool deck. A narrower portion beginning on the 13th floor will house the apartments. The top floor will include coworking spaces and a rooftop deck.
A Newmark team of Dustin Stolly, Jordan Roeschlaub, Chris Kramer and Daniel Matz arranged the debt.
Oak Row Equities bought the full-block site for $35M in 2022 from Miami-based Fairholme Capital Management, which had considered building a museum on the site.
CONSTRUCTION AND DEVELOPMENT
Pagani has become the latest in a string of luxury vehicle brands to lend its name to a Miami condo tower. The Italian carmaker is partnering with Miami-based Riviera Horizons on the 28-story Pagani Residences planned for North Bay Village, according to a news release.
The 70-condo building has standard units starting at $2.4M sized from 2K SF to 3,300 SF, not including expansive outdoor terraces, along with penthouses running just under 7K SF with 4,400 SF terraces.
The tower was designed by Miami-based Revuelta Architecture International with interiors by Pagani Arte, a new interior design division of the car company created as it embarks on its first residential project. The interiors will be “inspired by Leonardo da Vinci’s principles of Art and Science,” according to the release.
Pagani Residences is slated to include a 240-foot waterfront boardwalk, private boat slips, a rooftop pool deck, a slate of wellness amenities and a pet spa.
Fortune Development Sales is leading marketing and sales at the property, located at 7940 West Drive, which is slated to deliver in 2027. Riviera Horizons acquired the 0.8-acre site in 2021 for $4.8M through an entity called 7940 NBV Partners LLC, property records indicate.
The Pagani Residences announcement followed the groundbreaking for yet another car-branded condo tower. Miami-based Dezer Development began construction of the Bentley Residences at 18401 Collins Ave., adjacent to the developer’s Porsche Design Tower condos at Sunny Isles Beach.
The 62-story oceanfront project has 40% of its 216 condos under contract, with the remaining units priced from $5.6M, according to a release. Bentley Residences is slated to deliver at the end of 2027, and sales are being led by Dezer Platinum Realty and Douglas Elliman.
The tower was designed on 2.4 acres by Miami-based Sieger Suarez Architects in partnership with Bentley Motors. It features the Dezervator, named after the development firm’s founder, Gil Dezer, an elevator that lifts both cars and passengers to private three- and four-car garages attached to each condo.
Dezer told the South Florida Business Journal that he is in talks with a lender to secure between $550M and $600M in construction financing for the project.
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Miami-based developers Related Group and BH Group secured approval to build a 500-key hotel across from the Diplomat Beach Resort in Hollywood, The Real Deal reported.
The hotel, planned for a 4.4-acre site at 3451-3690 S. Ocean Drive, will include condo-hotel units available for purchase, although the exact unit mix hasn’t yet been determined.
The developers paid $21.5M in December to buy the site from Trinity Investments and Credit Suisse, the owners of the Diplomat, which paid $850M for the resort and two parking garages with adjacent development sites last year. Related and BH also paid $30M to the Diplomat’s owners in August for the second development site, where they are planning a condo tower.
The city of Hollywood approved amendments to the site’s master plan that will see the hotel built between the two garages. The hotel has yet to be named, but it will have Hilton branding and is slated to deliver in 2027, a year after the 350-unit condo tower is scheduled to be completed.
SALES
Pantzer Properties paid $83.5M for a 254-unit gated apartment complex called The Point at Palm Beach Grove, records from property intelligence platform Vizzda confirm.
Cottonwood Residential sold the property at 7130 Okeechobee Blvd. in West Palm Beach after acquiring it for $67M in May 2019. New York-based Pantzer financed the purchase, which breaks down to around $340K per unit, with a $50M Freddie Mac loan arranged by CBRE’s capital markets division.
The Point at Palm Beach Grove was built on 10 acres in 2017. It includes six residential buildings each rising four stories, a clubhouse and three covered single-story parking garages. The website for the complex lists units ranging from one to three bedrooms and priced between $2,015 and $2,925.
The development was renamed from Luma West Palm to Cottonwood West Palm Apartments after it was acquired by the Salt Lake City-based development firm. It was recently renamed The Point at Palm Beach Grove.
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A Stiles Corp. affiliate purchased the Shoppers Haven retail center in Pompano Beach for a significant discount from its last sale price, the South Florida Business Journal reported.
Shoppers Haven Property Owner LLC paid $27.5M for the 216K SF strip mall at 3371 N. Federal Highway. Entities managed by Chris Partridge of Pompano Beach-based Partridge Equity Group sold the property after buying it in 2016 for $50M.
First Horizon Bank provided a $36M mortgage to Stiles for the acquisition, according to the SFBJ.
The plaza’s anchor space is vacant, but county records indicate that Publix signed a 51K SF lease at the property in 2022, the SFBJ reported. The strip center was built on 22 acres in 1964, and other tenants include Party City, Dunkin’ Donuts, Outback Steakhouse, Michaels, YouFit, Bealls and Walgreens.
LEASES
National Millwork, a door and hardware manufacturer serving the multifamily market, signed a 101K SF lease at Turnpike Logistics Center in West Palm Beach in the market’s largest industrial lease so far this year, according to a release.
National Millwork, a subsidiary of distributor The Cook & Boardman Group, will move into Building 2 at 1715 Meathe Drive in the summer. It is relocating from 1177 W. Blue Heron Blvd. in Riviera Beach.
Dallas-based Dalfen Industrial, the property’s landlord, was represented in lease negotiations by CBRE brokers Kirk Nelson, Robert Smith and Jeff Kelly.
Turnpike Logistics Center includes 317K SF of industrial space across two buildings built on 29 acres in 2021. CBRE is marketing 55K SF at Building 2, the last remaining space at the property.
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Apple will open a freestanding store just west of the Jewel Box, the retail mall that is part of the 27-acre Miami Worldcenter in the city’s downtown core, Commercial Observer reported.
The single-story retail building is under construction on a 19K SF site at 725 NE First Ave. The store, which isn't slated to open until next year at the earliest, will be Apple’s sixth Miami-Dade County location.
Development of the sprawling Miami Worldcenter is being led by master developers Art Falcone, Nitin Motwani and CIM Group. The mixed-use project is being built in phases but will have a total of 300K SF of retail space.
Sephora, Lululemon and Ray-Ban already operate stores at the project. Other announced tenants include Starbucks, The Container Store, Savage X Fenty and a tequila bar from singer Nick Jonas and menswear designer John Varvatos.
CORRECTION, MARCH 12, 2:30 P.M. ET: A previous version of this story mischaracterized the loan Ytech secured for the assemblage at 1428 Brickell Ave. The loan replaced the acquisition loan but is not a construction loan.
