Despite interest rate hikes, the South Florida building scrum continues.
Omega Real Estate Management landed $100 million to construct a multifamily property in North Miami, according to the brokerage that negotiated the loan.
The Miami-based developer will break ground next week on the nine-story building with 358 rental units and 1,100 square feet of ground-floor retail. The apartment building is the first phase of a mixed-use development, dubbed The Garden District, that will also include an office component, spanning 36,000 square feet, and a food court.
On top of the construction loan, the North Miami Community Redevelopment Agency (CRA) provided $15 million in subsidies. 10 percent of apartments will be set aside for those earning at or below 80 percent of area median income.
Located at 1155 Northeast 126th Street, the development sits between Biscayne Boulevard and Dixie Highway. Between 2018 and 2022, Omega assembled a 5.7-acre lot for a combined $13.3 million, according to property records.
Churchill Real Estate’s direct originations platform, led by Jeff Rosenfeld and Sean Robertson, provided the two-year, floating-rate loan, with two one-year extension options. The loan is interest-only for the full loan term, including extensions. Berkadia’s Charles Foschini, Christopher Apone and Robert Iudice arranged the financing.
It’s the latest construction loan developers have secured for South Florida projects even as the Federal Reserve hiked interest rates last month by three-fourths of a percentage point – the largest increase since 1994.
Last week, Newgard Development Group and Lalezarian Properties nabbed construction loans, worth $110 million and $150 million respectively, for residential high-rises in central Miami.
Further north near West Palm Beach, Forest Development and Dan Kodsi’s Royal Palm Companies together scored one of South Florida’s largest construction loans this year, $269 million, for a luxury condominium property.
Julia Echikson can be reached at [email protected].