The borrower was Downtown Dadeland Residential Condominiums LLC, a joint venture between Gulfside Development Co. Inc. and the Canyon-Johnson Urban Fund LP. The fund is a joint venture between Canyon Capital Realty Advisors and former Los Angeles Lakers player Earvin Johnson's Johnson Development Corp.
The project will consist of seven mid-rise buildings on 7.4 acres. Downtown Dadeland will feature 125,323 sf of ground-floor retail and restaurant space, 416 upper-floor residential condominiums and a two-level, 900-space parking garage. Plans also include a recreation facility for residents with a pool, an outdoor cabana area and an exercise center.
The Boca Raton office of GMAC Commercial Mortgage worked with the Miami and Tampa offices of KeyBank on the transaction. "In the State of Florida, I would guess that there are only about five or six deals more than $100 million a year," says Marc Yavinsky, vice president and branch manager of GMAC's Boca Raton loan origination office, who arranged the deal through the company's Construction Lending Division and KeyBank. "I would say it's significant to have captured one of them."
The arrangement with two lenders was favorable, saving the borrower time and money, as typically loans of this magnitude are done with a four- or five-bank syndicate, according to Yavinsky. "It saves them time from a standpoint that in Florida, most banks have a limit of $25 million to $30 million … so throughout the approval process, you'd be (dealing with four or five entities)," he says. "In our case … it saves a lot of time for the borrower. We don't have the same constraints lending on a single asset as banks."
The condo units were 84% pre-sold. Major retail and restaurant tenants that have committed to taking space at Downtown Dadeland include Pier 1 Imports, Cargokids, Chili's, Romano's Macaroni Grill, Men's Wearhouse and the Bombay Co.
"With the Atlantic Ocean to the east and the Everglades to the west, there is a shortage of developable land in South Florida," Yavinsky notes. "The … developer was able to eliminate the need to allocate a portion of the site for parking by building a two-level, underground parking garage under the entire site. In addition to conserving space, having the parking garage be underground contributes to the development's small-town, neighborhood feel."
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