MultiplanREAM Secures Loan for Miami Beach Condo Project
- May 06, 2020
The developer of a luxury condominium in Miami Beach, Fla., has secured a $58.5 million construction loan to finance completion of the now more-than-halfway-complete 18-story project. The property, 57 Ocean, is situated on Millionaires’ Row. MultiplanREAM, the developer, obtained the financing from Bank OZK. JLL Capital Markets arranged the loan.
Featuring 70 homes, 57 Ocean offers 18 flow-through “Sky Residences” as well as a $35 million, full-floor penthouse. Buyers from New York, California and other high-income tax states, along with high-net-worth Latin Americans, have bought more than half the units.
Two- to four-bedroom residences are featured at 57 Ocean. Prices start at $1.5 million and homes range from 1,200 to 3,600-plus square feet in size. The residences offer sprawling terraces up to a dozen feet deep. Also featured are contemporary Italian kitchens and baths by Poliform. Prices of the Sky Residences start at $6.95 million each. A holistic spa with treatments by One Ocean Beauty is among the more noteworthy amenities.
“Timing is of essence on any deal, especially when you operate under a distressed global market,” Marcelo Kingston, managing director of MultiplanREAM, told Multi-Housing News.
“We put in place in less than 30 days a construction loan that would take on average 90 days to be structured and closed. Everything had to be done virtually and in high velocity, to avoid any further market deterioration. Due diligence access to site, sales center and construction was very limited due to the COVID crisis, which imposed additional challenges on the team. It took a lot of coordination and the use of technology to allow us to connect and interact with multiple providers and [meet] our tight deadlines.”
Comprising the JLL Capital Markets debt placement team representing MultiplanREAM was Manny de Zarraga, executive managing director, and Jesse Wright, director.
MultiplanREAM and the property’s exclusive residential brokerage, Fortune Development Sales, report 11 units were sold in six to seven weeks, among them a $46 million home and a four-bedroom, four-and-a-half-bathroom unit. The latter, No. 1702, was purchased by a New York-area buyer for $7.3 million. Acquirers have mentioned location, contemporary designs and holistic wellness amenities and services as factors in their buying decisions.
To date, MultiplanREAM has invested approximately $150 million in the development. Despite the impact of the COVID-19 pandemic, the company expects to top out 57 Ocean this August, and to deliver the building on schedule in September 2021.
Last week, JLL Capital Markets arranged the sale of The Loop, a class A community in the Houston area.