MIAMI—Trez Forman Capital Group recently completed an $85 million construction loan to a Fort Lauderdale development company led by Scott Bodenweber, Denny St. Romain and Thomas Vogel. The company plans to develop 4 West Las Olas, a riverfront 260-unit luxury rental project with approximately 12,000 square feet of retail and 387 parking spaces.
For Trez Forman, a joint venture formed in 2016 by Palm Beach-based Forman Capital and Vancouver-based Trez Capital Group—one of Canada's largest private commercial mortgage lenders— the 4 West Las Olas transaction kicks off a busy year. The venture is projected to complete more than $300 million in deals in 2018.
“As Florida exhibits continued growth due to the more favorable tax environment compared to other states, we believe the Florida economy will continue its expansion from workers, retirees, and foreign investors of real estate,” Brett Forman, president and CEO of Trez Forman who also arranged the 4 West Las Olas deal, tells GlobeSt.com. “Due to the density and price increases in Miami, the market is growing north through to Fort Lauderdale and the surrounding areas causing a strong demand for residential units.”
Trez Forman previously provided a $6 million land loan to the 4 West Las Olas owners when they acquired the 1-acre site in mid-2017. Trez Forman will assume the land loan in the new construction loan. The sponsorship is comprised of executives from Elevate Partners and NCC Development Group. Elevate is a real estate development and investment firm focused on the multifamily sector. The primary partners include St. Romain, Vogel and Bodenweber.
In December 2017, Trez Forman completed a $74.8 million construction loan to Dallas-based developer Lincoln Property Co. for the 26-story Church Street Plaza project planned for downtown Orlando. That transaction followed the company giving Encore Capital Management a $23.15 million construction loan for the redevelopment of the former Fashion Mall in Plantation into the mixed-use Plantation Walk.
While the 2018 multifamily outlook is softening, the overall feeling about markets is still optimistic and ULI's Emerging Trends in Real Estate report is predicting slower but more sustainable growth this year. In addition, as new trends like optionality become more mainstream investors are finding more ways to add value to single assets.
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