Related Group Seals $73M Loan From Cerberus for Wynwood 29 Project
The Related Group has locked in $72.8 million in construction debt from Cerberus Capital Management for a planned mixed-use residential and retail development, Wynwood 29, in the Wynwood section of Miami, Commercial Observer has learned.
The financing will allow Related and its partner Metro 1, a Miami-based real estate firm with a history in Wynwood, to finally move forward with a project that has been in the works since at least 2016.
Wynwood 29 will rise 12 stories on top of a 1.3-acre site in the heart of the area — officially at 2804, 2810, 2819, 2828 and 2838 Northwest First Avenue. The mixed-use development will feature 248 apartments, amenitized common areas, a 281-stall parking garage, and nearly 26,700 square feet of ground-floor retail space.
The project will include a fitness center, bike storage, a pool deck with an outdoor kitchen for residents and a coworking area, according to information from Newmark, which sourced and arranged the debt financing on behalf of the developers. Newmark’s team was led by Dustin Stolly and Jordan Roeschlaub, who were joined by new hire Daniel Matz, as well as Chris Kramer, Nick Scribani, Donald Pavlov and Dominick Calisto.
“The lender community was all over this one, indicative of the tremendous demand associated with the hottest market in the U.S.,” Stolly said. “By leveraging this demand, we were able to achieve a great execution.”
Newmark’s debt and equity structured finance team, led by Stolly and Roeschlaub, has started bolstering its capital markets presence in the Southeast to help meet the demand that’s come from growing investor interest in the region. They recently tapped former Mission Capital Advisors pro Matz to lead the buildout and growth of its southeastern footprint out of Miami.
The Related and Metro 1 joint venture acquired the acreage that will house the two-building development in 2016 for $12 million, with an initial proposal that included 182 residences, about 19,750 square feet of retail, and also almost 27,000 square feet of office space. They began demolition in the late summer of 2017.
The developers revised their plans for the project — designed by Arquitectonica — last summer, opting to shift away from the office space and add more residential units.
Wynwood has developed into an arts and culture hub over the last several years, which has led to a surge in new development and redevelopment efforts, something Related and Metro 1, among other developers, have taken advantage of with a series of projects. This project will be proximate to Miami’s Midtown and downtown areas, as well as the Miami Design District and Miami Beach.
“Marking Related’s fourth deal in the area, Wynwood 29 further demonstrates our commitment to Wynwood’s continued renaissance,” said Related Group President Jon Paul Pérez. “We are proud to play a part in the collaborative efforts to bring new energy to the neighborhood as we focus our investment and attention to delivering another true live-work-play residential community as vibrant as Wynwood is.”
Mack Burke can be reached at firstname.lastname@example.org.