MIAMI—In one of the largest construction financings made to a South Florida developer this year, Marina Palms Yacht Club & Residences just won an $87 million loan. All told, developers have secured $185 million construction financing for the waterfront property.
The Plaza Group and The DevStar Group inked a $98 million loan to build the first tower in 2013. The new financing comes about a month after Marina Palms formally topped off its north tower.
“Our efficient capitalization structure and our ability to once again access traditional financing markets has allowed us to provide our buyers with a high quality product at a very attractive price point,” says Fairman. “Private equity and specialty finance lenders would have charged a much higher rate that would have added to the project's financing costs. We have the financial wherewithal to fund and complete construction of the project's second tower.”
HSBC Bank USA is the administrative agent and arranger with Branch Banking and Trust Company (BB&T) rounding out the lending group. Michael Wadler, vice president of real estate finance at HSBC Bank USA, says, “Due to the overwhelming success of the north tower we are excited to provide the construction financing for the south tower.”
Located in North Miami Beach, Marina Palms Yacht Club & Residences features two 25-story towers with 468 residences total. The north tower is sold out and the south tower is already approximately 60% sold out at prices averaging $500 per square foot.
Located at 172nd Street and Biscayne Boulevard, Marina Palms will feature a full-service yacht club and marina with 112 slips for yachts up to 90 feet in length. Construction of dock structure is underway. Marina Palms is the first residential and full-service marina/yacht club development to be built in Miami-Dade County in over 20 years.
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