MIAMI-The credit markets aren’t quite thawed to room temperature, but lenders are warming up to the multifamily market. The latest example is a first loan on Terrazas Riverpark Village, a 324-unit, class A, two-building complex near downtown Miami.
Carey Stiss, a real estate partner at Bilzin Sumberg, negotiated a $30 million first mortgage loan on behalf of NXT Capital. NXT Capital made the loan to AP WP Terrazas, a joint venture between a New York-based institutional fund and an Atlanta-based regional developer. White Plains, NY-based Shapiro & Gellert represented the borrower.
“This project was intended to be a condominium development,” Stiss tells GlobeSt.com. “It was built at the height of the market in 2006 along the Miami River near the Jackson Memorial Hospital district. Of course, it got caught in the downturn.”
According to Miami-Dade public records, the original developer was Miguel Angel Barbagallo, also known as B Development Group. iStar held the construction loan for $84.5 million. Public records indicate iStar took a deed in lieu of foreclosure in April 2010 and acquired all units. None had been sold to individual buyers. iStar sold the property to AP WP Terrazas in October 2010 in an all-cash deal.
“The borrower decided the project needed to be a rental complex instead of a condominium,” Stiss says. “Once they got the project sufficiently leased up to support mortgage financing, they decided to take out some of the equity.”
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