Developers Land $128.5M Financing For Two Florida Condo Projects
September 11, 2013
A joint venture of Property Markets Group and JDS Development has received $128.5 million in financing for two Florida condominium projects.
The transactions arranged by Mission Capital Advisors include a $106 million construction loan to complete development of Echo Aventura, a 190-unit luxury condominium high-rise at 3250 NE 188th Street in Aventura, FL; and a $22.5-million land loan at nearly 75% loan-to-cost that will allow development of Echo Brickell, a 166-unit condo tower to be constructed at 1451 Brickell Ave. on the Miami waterfront.
Managing Director Jordan Ray, Managing Director Jason Cohen and Director Ari Hirt led the Mission Capital team representing the JV partnership.
"Despite seeing resurgence in the Florida condo market, it can still be difficult for a developer to secure a land loan or a construction loan as lenders continue to tread lightly," Ray said.
Designed by architect Carlos Ott, Echo Aventura is being developed on five acres along the Aventura waterfront. The $200 million project, which is nearly 60% pre-sold, is being developed using buyers’ deposits to help fund part of the construction costs.
The construction loan for Echo Aventura was for 50% of the total development costs and required the borrower to retain only 5% cash equity - a rarity in this day and age when traditional banks want developers to have significant equity in a project, Ray noted.
The land for Echo Brickell includes 273,000 net salable square feet of buildable space. Also designed by Ott, the condominium building will be 55 stories and will offer views of Biscayne Bay, the Atlantic Ocean and the Miami skyline.