An old warehouse district experiencing redevelopment in Fort Lauderdale is in line to get a luxury apartment building that just got a $9.1 million boost.
The 35-unit Forge will rise seven stories in the FATVillage area near the downtown Brightline passenger train station. Brightline is to be renamed Virgin Trains USA after Sir Richard Branson became an investor.
Urban Street Development LLC, based in Fort Lauderdale, is building The Forge and secured the financing from Amerant Bank NA, based in Coral Gables, on May 13. The financing represents 55% loan to cost.
FATVillage, starting with an acronym for Flagler Arts Technology, is between Andrews Avenue and the Florida East Coast Railway tracks from Northwest Fourth to Sixth streets. It's within Flagler Village, a larger, formerly neglected industrial district that's been in revival mode for about five years.
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Flagler Village also is home to the MASS District, short for the Music & Arts South of Sunrise District.
The Forge is to rise on the northeast corner of Northwest Flagler Avenue and Fourth Street at 401NW First Ave.
Berkadia managing director Brad Williamson in Miami secured the financing on behalf of Urban Street Development.
The Forge will weather the current economic uncertainty created by the coronavirus pandemic better than other projects for a multitude of reasons, including its place in an opportunity zone, Williamson said.
The Tax Cuts and Jobs Act of 2017 created opportunity zones to prompt investment in areas designated as economically distressed. Investors can defer paying taxes on capital gains from commercial ventures if they invest in a business or real estate project in an OZ. The tax break depends on how long funds are keep in the OZ venture. A 10-year deal allows investors to skip taxes on the appreciation.
The Forge also is in a coveted neighborhood, making it more resilient against any coronavirus-prompted market changes, Williamson said.
"This is a boutique project of high-end lofts unlike anything that's been built in Fort Lauderdale in some time and is well located in FATVillage within walking distance to the Brightline," he said in a news release. "Opportunity zone projects with long-term holds and patient capital being developed in desirable infill locations will weather these uncertain times better compared to their competitors."
The Forge will offer one- and two-bedroom units ranging in size from 781 square feet to 1,350 square feet.
The units will have ceiling heights of 12 to 14 feet, finished concrete floors, quartz countertops and smart home technology. The building will have a garage, CrossFit-inspired gym, and access to the pool deck and the adjacent Foundry Loft.
Urban Street Development also developed the Foundry Loft, a seven-story condominium building with 36 industrial-style units with large windows.
Urban Street is led by Fort Lauderdale natives Alan Hooper, a construction contractor and real estate developer, and Tim Petrillo, a restaurateur and entrepreneur.
Forge construction is set to start this year and finish late next year.
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Lidia Dinkova
Lidia Dinkova covers South Florida real estate for the Daily Business Review. Contact her at [email protected] or 305-347-6665. On Twitter @LidiaDinkova.
