A developer known for its empire of “zombie” malls has taken out a nearly half-billion-dollar loan to bring two new additions to Miami's skyline.
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New York-based Namdar Group landed a $460M loan from Scale Lending for the construction of two 43-story multifamily towers set to bring more than 1,000 apartments to Downtown Miami, according to a release.
“This project reflects that partnership and our confidence in the strength of downtown Miami’s housing market, where population growth and demand for high-quality rental products remain among the strongest in the country,” Martin Nussbaum, co-founder and principal of Scale's parent company, Slate Property Group, said in a statement.
The debt includes a $230M bridge loan for the completion and lease-up of the project's first phase: a 358K SF tower at 55 NE Second St., set to bring 680 units. The tower is almost complete, and a temporary certificate of occupancy is expected early next year.
Another $230M is going to the second phase, a 395K SF tower with 714 units at 50 NE Third St. that is expected to deliver in the spring of 2028.
Namdar Group, which didn't respond to a request for comment, lists the sites on its website as 22 NE First Ave., Phase 1 and 2.
The 1,394 apartments across the two towers range from studios to two-bedroom units. Spanning 62K SF, the indoor and outdoor amenities include a gym, golf simulator, movie room, coworking space, basketball court and bowling alley.
The apartment towers will also have a parking garage with 269 spaces and 7,100 SF of retail on the ground floor.
Scale has been on the project since the very beginning, when it provided Namdar with a $195M cross-collateralized loan for the purchase and development of the first phase in August 2022.
Scale also provided a $172M construction loan for the purchase and development of the project’s second phase on top of a $23M land loan, according to the release.
Namdar, which has multifamily projects in New York, New Jersey, Miami and the Caribbean, purchased the sites for $30.5M in 2022, according to property records.
The massive construction loan was announced a day after the $565M loan Ytech landed for its luxury condo tower in Brickell.
Despite warnings of oversupply, condo and apartment financing has been on a roll this year, reaching its highest levels since 2022. Since April 2, more than $4B has been committed to construction projects in South Florida, according to a Bisnow analysis.
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