Madison Realty Capital Lends $310M on Chetrit Group’s Miami River Mega-Development
The Chetrit Group’s long-planned Miami River project is officially off to the races.
Madison Realty Capital (MRC) just provided a $310 million loan to the New York-based developer for the first two phases of the 6.2-acre development, located in Miami’s Brickell neighborhood, Commercial Observer has learned.
Galaxy Capital Group‘s Henry Bodek arranged the loan, which is also collateralized by land for the third, fourth and fifth phases of the project. The Chetrit Group contributed significant cash equity to the transaction, sources said.
“The Chetrit Group is a highly sophisticated and experienced owner and developer with significant experience in Miami and New York, and we are pleased to leverage our expertise in delivering financing solutions through every phase of development and to be the lender of choice for the first phases of this world-class project,” said Josh Zegen, managing principal and co-founder of Madison Realty Capital.
“We look forward to continuing to identify creative opportunities to support The Chetrit Group’s Miami River development, which will bolster the neighborhood’s expanding live, work and play environment. Furthermore, we are excited to be part of a project that contributes toward affordable housing in Miami as well as further improvements in public areas and public transit that benefit the city at large.”
The city of Miami approved plans for the behemoth project in October 2015, The Real Deal reported, having previously assembled the site through several acquisitions for around $90 million. Kobi Karp is the architect behind the $1 billion project’s design, according to Florida Yimby.
When completed, Miami River will span 2.5 city blocks, with MRC’s loan financing Phase I, a 54-story, 632-unit mixed-use tower, and Phase II, a two-building structure with 24,000 square feet of commercial space. The second phase will also see the development of a river walk connecting downtown Brickell to Jose Marti Park along the Miami River.
Some of the financing proceeds will be contributed to the Miami-Dade County Affordable Housing Trust Fund — which serves to meet the housing needs of residents in the area — and are earmarked for the East Little Havana area in particular. Funds will also be used for improvements to Jose Marti Park and the City of Miami trolley service.
MRC has been especially active in terms of lending activity in the South Florida area. In the Brickell neighborhood specifically, it also provided a $105 million loan to Fort Partners for the acquisition and modernization of the Four Seasons Hotel Miami in July.
Of the firm’s pull to the neighborhood, Zegen said: “Brickell has the highest concentration of international banks in the southeastern United States, and as major corporations relocate and open new offices in Miami, Brickell continues to experience rapid employment growth and high demand for modern housing options.”
Joseph Chetrit, principal of the Chetrit Group, said MRC “worked diligently” to execute the Miami River financing quickly and efficiently. “We are extremely pleased with their hard work and
professionalism,” he said.
“Madison Realty Capital’s significant experience in Miami and proven track record of delivering flexible financing solutions for our clients made them the ideal fit to execute on behalf of a premier sponsor with a well-located, high-quality asset,” Bodek added.