Terra Lands $141M Construction Loan for Bay Harbor Islands Project
Development firm Terra has landed a $141 million construction loan for a mixed-use project in Bay Harbor Islands.
The lender is Mack Real Estate Credit Strategies. The borrower is 1177 Bay Harbor Islands LLC, an affiliate of Terra.
Walker & Dunlop’s Keith Kurland, Aaron Appel, Jonathan Schwartz and Adam Schwartz negotiated the debt.
While Terra has yet to reveal many of the details of its development plan, the company said in a statement that it envisions a mixed-use development. Those uses “will encompass a boutique high-end residential component, along with Class A office and retail space including a signature food-and-beverage experience at street level,” the company said.
Terra expects to break ground this year.
“The development will meet growing demand for luxury living and boutique commercial space as more residents and companies gravitate to South Florida, while reinvigorating Bay Harbor’s iconic Kane Concourse thoroughfare,” the developer said in a statement.
Terra is headed by David Martin and has a portfolio of 10 million square feet of commercial properties. The company acquired the development site at 1177 Kane Concourse in June 2021 for $31.5 million, Commercial Observer reported at the time.
That parcel last sold in 2016, when a joint venture between North Carolina-based Northwood Ravin and New York-based Wharton Equity Partners paid $20.3 million for it. The developers sought approval to build a mixed-use, five-story project in 2020. But the land remained undeveloped.
Bay Harbor Islands is a town of about 5,900 people, located in coastal Miami-Dade County, near Surfside and Miami Beach.
It’s Terra’s first deal to get financing since the company was sued this past November for its alleged role in weakening the Champlain Towers South in Surfside before that condominium building’s deadly collapse in June. Champlain said the construction of the luxury Eighty Seven Park high-rise next door to the Champlain Towers South led to the condo building’s failure.
Jeff Ostrowski can be reached at firstname.lastname@example.org.