Marina Palms Yacht Club & Residences recently closed on an $87 million loan to fund construction of its second condominium tower. It’s believed to be the largest construction loan made so far this year to a South Florida condominium developer. Marina Palms has now secured a total of $185 million in construction financing for the development of this iconic waterfront property, which includes 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.
“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.
This new financing comes about a month after Marina Palms formally topped off its north tower, a major milestone, and as construction is quickly progressing on the new namesake marina.
“Closing on traditional bank financing for the south tower demonstrates to the community and our buyers the strength of the development team and that we are right on schedule,” said Neil Fairman, president of The Plaza Group, one of the development partners.
“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,” Fairman said. “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 sold out and continued demand for residences in the south tower from international and domestic buyers, Marina Palms Yacht Club & Residences has been selling units at a swift pace in the south tower at prices averaging $500 per square foot. The south tower is already approximately 60 percent sold out.