The Related Group Pays off $160 Million Construction Loan for Brickell Heights Less Than 60 Days After Project Opening

The Related Group has paid off a $160 million construction loan for Brickell Heights less than 60 days after the grand opening of the project. The twin tower, 690-unit towers were 100% sold out and are already nearly 50% closed since the June 7 opening (2017). The $160 million loan was issued by Wells Fargo Bank in April 2015 and is The Related Group’s second loan pay-off in the last year.

“The speed at which we paid off this loan is further validation of our effort to finance these projects in a responsible manner,” said Ben Gerber, Vice President of Finance for The Related Group. “It also speaks to the strength of the Related brand and the South Florida condo market as a whole.”

“Closing is easy after buyers see that today’s Brickell matches up to what they saw in renderings a few years ago. They bought into a walkable, metropolitan downtown lifestyle, and now they’re excited to start living it. We look forward to delivering SLS LUX in the winter and completing our vision for South Miami Avenue.” said Carlos Rosso, President of The Condominium Development Division of The Related Group. 

The 47-and 49-story towers were designed by globally acclaimed architectural firm Arquitectonica and interiors by David Rockwell of the Rockwell Group. Amenities include a state-of-the-art fitness center, men's & women's spas, each building has a lounge room, curated art throughout, 4 swimming pools and a garden. The property will also feature a 30,000 SF Equinox Club, as well as a 6,000 SF SoulCycle studio. Brickell Heights marks the third Related Group project to open on South Miami Avenue, following SLS Brickell Hotel & Residences and 1100 Millecento. Photos via TAMZ. 

Terra Closes on $32 Million Construction Loan, To Break Ground on Mary Street Office Complex in Coconut Grove

Following the successful closing of $32 million in financing from BB&T Bank, a partnership led by Miami-based Terra will break ground on construction next month at Mary Street, a new Class A office and retail complex in Miami’s Coconut Grove neighborhood. The Touzet Studio-designed project will transform a parking garage into 78,000 square feet of contemporary Class A office space with 18,000 square feet of retail space, while preserving public parking use. The mixed-use Mary Street office complex is the latest example of 'adaptive reuse' infill development in Miami. Construction is expected to begin in early August 2017 and be completed in late 2018. Mary Street is being developed in partnership with Mayfair Real Estate Advisors, and will mark the first delivery of new Class A office space in Coconut Grove in more than 20 years, following the completion of Terra's new Grove at Grand Bay condominium two blocks away. Mary Street, Grove at Grand Bay and Park Grove, a nearby three-tower luxury residential complex being developed by affiliates of Terra, represent a new wave of design-driven urban infill development reflecting Coconut Grove’s strong residential demographics and allure as one of South Florida's most walkable and self-contained urban neighborhoods.

Mary Street's Touzet Studio design will feature a terracotta brise soleil whose vertical patterns mirror the contours of a seashell, with transformed retail storefronts that will enhance visibility and accessibility from the street. The building’s amenities include a state-of-the-art main lobby, 24-hour security, ample above ground public and office parking, covered valet and drop-off, and dedicated elevators with direct office access. Electric car charging stations, bicycle stations and bicycle storage will be available for employees, owners and guests who travel by eco-friendly means. The development’s revamped retail, which will include prime street-level frontage along Mary, Oak and Rice Streets, will cater to chef-driven restaurants with café seating and unique retail serving Coconut Grove’s residents, visitors and daytime workforce. The retail component will connect the luxury residential corridor along South Bayshore Drive with the neighborhood’s urban heart concentrated along Grand Avenue and Main Highway.

“Our ability to secure favorable construction financing for Mary Street speaks to the promising office market dynamics in Coconut Grove, the project's superior location, and the surge of interest we've received among prospective tenants within months of unveiling our plans,” said David Martin, president and co-founder of Terra. 

Fortune International Group & Rialto Announce Launch of Vaster Capital to Help Foreign Nationals Close on Pre-Construction Condo Units

Fortune International Group & Rialto have announced the launch of Vaster Capital, a private bridge lender specializing in residential and commercial real estate. The goal of the company will be to fill a void in the marketplace for South Florida real estate investors seeking bridge loan products, including foreign nationals. Vaster Capital will have a major impact helping foreign nationals close on pre-construction condo units in which they are in with a 50% deposit. Fortune International Group (Fortune) is a Miami based real estate development company behind iconic towers such as Jade Signature, The Ritz-Carlton Residences, Sunny Isles Beach, and Auberge Beach Residences and Spa Fort Lauderdale; Rialto Capital Management is a Miami based real estate investment and asset management firm, which invests and manages assets throughout the capital structure in real estate properties, loans and securities, boasts a deep-rooted background in institutional lending and financial services. Vaster Capital has the ability to close loans much faster when compared to other lenders due to less bureaucracy and the use of technology. The firm plans to lend a substantial amount of capital in South Florida, with a goal to expand geographically in the near future. Vaster Capital has also formed a joint-venture with the Related Group, known as Vaster Capital II, to provide financing for buyers purchasing at Related’s portfolio of projects such as Paraiso Bay, Brickell Heights, Hyde Midtown, and SLS Lux. 

“Our goal has been to satisfy a long-standing gap within our marketplace, providing professional and customized bridge lending products while better servicing the Miami real estate investor,” said Edgardo Defortuna, President and CEO of Fortune International Group & founder of Vaster Capital. “This is a need I have always sought to address, appreciating that numerous buyers – both in the U.S. and beyond -- are interested in buying and selling real estate offerings in Miami, but do not have access to customized loan offerings that meet their specific needs.”

“Given both Rialto and Fortune’s knowledge of the real estate industry, along with Rialto’s extensive experience in real estate lending, Vaster Capital is structured to become an important lender in South Florida as well as other key markets, allowing borrowers to accomplish their financing needs through a seamless and efficient process,” said Eric Feder, Vice Chairman of Rialto Capital Management.

Foreclosures and Delinquencies Down in Miami-Dade in June 2016

The foreclosure rate in Miami has fallen yet again in Miami by 1.23% in June to 2.39% according to The Real Deal and CoreLogic. The number is still double the national average which is around 1.2%. Delinquencies were also reported to be down as only 6.36% of home mortgages in Miami-Dade were over 90 days past due in June, down from around 9% last year. This should single some stability in the market as opposed to past Miami real estate cycles.