$57M Loan Funds Two-Story Condo Project

FORT MYERS, FL-Riva Del Lago Development Inc. has obtained a $57-million loan to fund construction of Riva Del Lago Condominiums, to consist of two 21-story towers in the city. Corus Bank NA provided the loan.The project break ground before the loan closed. Construction is up to the fifth floor and is scheduled to be competed in September 2005, according to Keith R. Gibbons, vice president of Corus Bank.The developer, Sanibel-based the Armenia Group, started construction on the project with equity, explains Gibbons, who did not disclose the total project cost. “The remainder of the project cost is being funded by a combination of borrower equity, mezzanine loan and the usage of earnest money deposits,” he says. The interest rate was not disclosed, but was floating over three-month Libor.Riva Del Lago, located in the heart of this growing city, will have a total of 323,000 saleable sf and include a four-story, approximately 13,000-sf amenity complex and a 340-space parking garage between the two towers.The loan marks Corus Bank’s first metro-area project loan closing. Initially unfamiliar with the market, the bank issued a commitment within four weeks of seeing the project and meeting with the developer.Gibbons says he expects the project to be successful, due in large part to the demographics of the area and the developer. “We’re new to that area but not new to Florida,” he says. “There are strong presales, a growing population and a growing economy.” Units are roughly 60% pre-sold. In addition, the developer’s experience is a factor, he says. John Armenia, the principal in the Armenia Group, has more than 20 years’ experience in condo development in the Fort Myers area.Gibbons adds in a statement: “John Armenia is a highly experienced developer operating in a rapidly expanding condo market, and we are happy to be establishing a long-term, mutually beneficial relationship with him and his group.”Corus Bank, a national construction lender that specializes in condo, hotel, office and apartment loans, is the banking subsidiary of publicly traded Corus Bankshares Inc., based in Chicago.