A trio of investors led by Milan-based Bizzi & Partners Development and South Florida’s Terra Group secured a $72 million bridge loan to refinance existing debt and fund predevelopment costs for a condominium project in Miami Beach, sources familiar with the deal told Mortgage Observer.
The loan on 8701 Collins Avenue, provided by New York-based RWN Management, carries a term of two years and a “competitive interest rate,” according to RWN’s portfolio manager Jon Singer, who worked on the deal.
New York-based Cooper-Horowitz’s Richard Horowitz brokered the short-term financing.
The sponsors, who also include Vector Group’s New Valley, are planning to demolish a Howard Johnson resort on the premises and build a waterfront luxury condo tower, a person with intimate knowledge of the project said.
The partnership acquired the 225-room Howard Johnson Plaza Dezerland Beach and Spa at 8701 Collins Avenue from New York-based Dezer Properties for $65 million in December 2013, as previously reported.
Representatives for Terra Group and Bizzi & Partners declined to comment for this story.