Adi Cah‘s The capital of Tyko doled out Florida’s largest-ever construction loan: $817 million to task-branded, waterfront condo development in Miami, project sponsor announced Wednesday.
Fortune International Group and Kar Properties develop the two-tower project 24 Southwest Fourth Streetfacing the Miami River, across from Brickell Town Center. Both skyscrapers will rise 68 stories, housing 217 units each.
Construction is expected to be completed in 2030. 1.8 hectares, Architect Rafael Viñoly-the project he designed has generated more than $500 million in sales to date, including the purchase of a $30 million penthouse, according to sponsors.
The loan transaction “shows the depth of confidence in the project and the continued global appetite for best-in-class real estate in Miami,” Edgardo Defortunapresident and CEO of Fortune International Group, said in a statement.
Although increase in interest ratesLenders are still pushing mammoth construction loans for luxury condo projects in South Florida, usually after strong presales. Earlier this week, Fortune International Group, together Chateau group, obtained a loan of $463 million completed one condo tower St. Regis Residences condo development in Sunny Isles Beach.
In 2022, Defortuna purchased the Downtown Miami site for $58.8 million, partnering with KAR Properties, which has owned it since 2013, according to property records. In 2015, New York-based KAR Properties launched sales for a luxury condominium project, but construction never began. The land, surrounded by three condominium buildings in a gated community, remains vacant.
In the year 2023, OZ Bank provided a loan of $38 million for marketing costs and site work for Faena Residenceswhich marks the first condo development for the hotel brand, founded by Alan Faena and a billionaire Only Blavatnik in 2000. Operates oceanfront hotels and boutique cultural venues in Miami Beach as well as hotels in New York and Buenos Aires.
Funding beyond Stephen Ross‘s $772 million construction loan for two class A office buildings in West Palm Beach, which previously held the record for Florida’s largest construction loan.
Walker & Dunlop‘s Michael Stepniewski, Keith Kurland, Aaron Apple, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer and Sean Bastian arrange financing for Faena Residences.
Tyko Capital, which was created by Elliott Managementhas emerged as one of the most famous lenders in South Florida, issuing large loans for high-end projects, such as Bentley– brand condominium in Sunny Isles Beach and on convention center hotel in Miami Beach.
Julia Echikson can be reached at jechikson@commercialobserver.com.