Case Study: $81MM Condo/Rental Property | Development | Miami, FL

Structured and arranged a construction loan to develop a 289,000-square-foot, two-tower, mixed-use project in the Little Havana section of Miami, Florida.

Designed as two split condominium and multifamily rental towers with retail space on the ground level, the development was, at the time, the first high-rise constructed in the area in more than 10 years. 

Challenges

The design component that included the combination of both rental and condominium towers within a single structure proved challenging to underwrite. Sponsorship also faced constraints from limited unit pre-sales in the condominium tower. Furthermore, new Basel III regulations impacted equity requirements and contribution value for the land.

Solutions

Identified a lender that was able to become comfortable with the mixed-use components and was familiar with the nuances of the Little Havana submarket. From the onset, sponsorship preferred a non-recourse loan but, once identified, opted for a less expensive recourse option.

Crafted a creative hybrid, construction/conversion structure that provided flexibility to release units in the rental tower once certain hurdles were met.