MIAMI-A developer has secured a $90-million construction loan for South of 5th, a 28-unit condominium project at 125 Ocean Dr. Demolition work on the site has started, with the project expected to be completed within 18 months.
The loan was secured by New York City-based Carlton Advisory Services executives Romano Tio, Marc Sznajderman and Will Lee. Sznajderman tells GlobeSt.com that the loan will pay for all the construction costs of the project.
The project, on one of the last available beach sites in South Beach, will include three cabanas in addition to the condominiums. It is bordered on the north by the South Beach Marriott Destination Resort and on the south by the Bentley Beach condominiums. The architects on the project were Nichols, Brosch, Wurst and Wolfe. Prices for the units range from $1.5 million to $10 million.
With growing weakness in the South Florida condominium market, Carlton faced challenges in obtaining the financing, Sznajderman says. “There are a number of lenders that are not pursuing financing for condo project,” he says. “You have to be more aggressive to get your clients the financing they’re looking for.”
South of 5th has a number of favorable attributes, including a high number of pre-sold units and a premier location. “With great real estate and great sponsorship, you can still obtain financing,” he says.