PMG Secures $413M in Construction Financing for Miami Luxury Towers
It is the largest loan transaction in South Florida this year.
PMG will be breaking ground next week on One Twenty Brickell Residences, a dual-tower luxury mixed-use condominium and rental development with a total of 803 residences located in Miami’s Brickell district. The national developer has secured $413 million construction financing from an Ares Real Estate fund alongside Monarch Alternative Capital.
It is the largest loan transaction in South Florida this year. The financing covers the condominium, multifamily, commercial and parking components of the property at 120 SW 8th St. The project will feature a 37-story, 277-unit condominium tower and a 41-story, 537-unit rental tower with a shared podium. One Twenty Brickell Residences is slated for completion in 2028.
A JLL Capital Markets Debt advisory team represented PMG in the transaction, and was led by Senior Managing Directors Christopher Peck and Brian Gaswirth, Senior Directors Nicco Lupo and Nick Lavin, Director Jimmy Calvo and Associate Paul Adams. A PMG Capital Markets team comprised of Andrew Warman, Jon Blank and Paton Marion also worked to secure the financing.
PMG officials noted that obtaining financing for multifamily towers is still challenging because of current market and macroeconomic conditions. They said continued support of the Ares and Monarch teams underscores the confidence the capital markets have in PMG as a sponsor and the firm’s ability to deliver both a luxury for-sale and rental product.
READ ALSO: The Multifamily Market 5 Years After the Pandemic
Last summer, Ares and Monarch refinanced another PMG property, a 10-story, 318-unit mixed-use development in Miami’s Wynwood Arts District, with a $178 million loan.
Transaction legal teams
Several legal teams helped close the construction financing deal. PMG’s in-house team consisted of Lowell Plotkin, Scott Buscemi and Lindsay Davis. James Godman, Borna Khoshand and Celeste Williams at Kramer Levin Naftalis & Frankell LLP served as the lead transactional counsel. David Shear, Luis Flores and Teofilo Victoria at Saul Ewing LLP served as condominium counsel and local counsel. Javier Avino and Andres Rivero at Bilzin Sumberg Baena Price & Axelrod LLP were land use counsel and Evan Wagowski at Greenberg, Trager & Herbst, LLP, served as construction counsel.
One Twenty Brickell highlights
The two-tower luxury development was designed by Sieger Suarez Architects, with interiors by Cotofana Designs. The first tower will offer 266 fully-finished and furnished condominium residences, each with their own deeded office suite. At the time of the announcement, the condominiums are 91 percent sold.
The office space will be located on floors 2 through 11 and will have concierge secretary service, private elevators, as well as a reception area, coffee station and reservable conference room.
The rental apartments in the second tower will be operated by Sentral Management Platform. The tower’s units will have studio through three-bedroom layouts. Each residence will have fully-integrated kitchens with custom countertops, with imported and custom kitchen and bathroom cabinetry by Italkraft, WaterWorks bathroom fixtures, a contemporary lighting package and fully built-out closets in the primary bedrooms. The units will also include PMG’s smart home technology.
Multifamily tower residents will have access to more than 48,000 square feet of amenities, including a lobby with concierge service, gym and fitness studio, pool and hot tub, grilling terrace, social lounges, co-working hub and daily community events.
More than 60,000 square feet of amenities will be available for condominium residents, including an owner’s lounge, infinity-edge pool, pickleball court with courtside seating, a kids’ club and gym, alongside a café and juice bar. The One Twenty Brickell Residences Wellness & Fitness center will feature steam, sauna and treatment rooms, a relaxation area with outdoor terraces, a fitness studio with high-tech equipment, a movement studio and yoga lawn.
The development is situated less than 1 block from Brickell City Centre and Mary Brickell Village, offering residents access to shopping, dining and entertainment options.
PMG pipeline
PMG’s current pipeline across pre-development, construction, lease-up and sell-out totals more than 10,000 residential units and 20 million square feet of development. Rental projects operating under the Society Living brand include locations in Denver; Miami, Atlanta, Nashville, Orlando, Fort Lauderdale and Brooklyn, N.Y.
Condominium projects include 111 W. 57th Street in Manhattan and E11EVEN Hotel & Residences, Waldorf Astoria Hotel & Residences and The Elser Hotel & Residences in Miami. On Florida’s West Coast, PMG is developing the Sage Longboat Key beachfront condos and One Park Sarasota in Sarasota, Fla. PMG also has a national affordable housing division.
