Believed to be the largest construction loan made so far this year to a South Florida condominium developer, Marina Palms Yacht Club & Residences recently closed on an $87 million loan to fund construction of its second condominium tower.
Developed by affiliates of The Plaza Group and The DevStar Group, Marina Palms now has a total of $185 million in construction financing secured for the development of this iconic waterfront property, including the closing of a $98 million construction loan on the first tower in 2013. HSBC Bank USA, NA is the administrative agent and arranger with Branch Banking and Trust Company (BB&T) rounding out the lending group.
“Our efficient capitalization structure and our ability to once again access traditional financing markets has allowed us to provide our buyers with a high quality product at a very attractive price point,” said Neil Fairman, president of The Plaza Group, one of the development partners. “Private equity and specialty finance lenders would have charged a much higher rate that would have added to the project’s financing costs. We have the financial wherewithal to fund and complete construction of the project’s second tower.”
Marina Palms Yacht Club & Residences, located in North Miami Beach, features two 25-story towers with a combined 468 residences. With the north tower recently topped off, construction is quickly progressing on the new namesake marina. Now north tower sold out and continued demand for residences in the south tower from international and domestic buyers, the tower is approximately 60 percent sold out.
“Due to the overwhelming success of the north tower we are excited to provide the construction financing for the south tower,” said Michael Wadler, vice president of real estate finance at HSBC Bank USA.
The project will feature a state-of-the-art full-service yacht club and marina with 112 slips for yachts up to 90 feet in length. Every two- three- and four-bedroom residence and penthouse offers luxury finishes and amenities such as butler service, exclusive boat club for residents, infinity-edge pool and hot tub, a state-of-the-art gym, a spa with treatment rooms, a sauna, a steam room and workout studios, a news café, club room with bar, pool table and 100-inch-plus TV, children’s playroom and teen lounge. The development will have secure, gated-access with 24-7 valet service.