Madison Realty Capital Upsizes Chetrit Group’s Miami River Loan to $340M
By Cathy Cunningham May 10, 2024 5:32 pm
reprints
Chetrit Group’s Miami River project is floating along nicely.
The developer just upsized its existing construction debt on the property to $340 million, Commercial Observer can first report.
Madison Realty Capital (MRC) provided a $310 million construction loan on the project back in 2021 and added a $30 million mezzanine loan to the capital stack this week, bringing the total amount to $340 million. Galaxy Capital’s Henry Bodek arranged the financing.
The project, which will span more than two city blocks when completed, is split into several phases. The MRC loan covers the project’s first phases — a 54-story, 632-unit mixed-use building — with later phases serving as collateral for the loan. Construction of the development’s first phase is almost complete, sources said, with completion expected in the fourth quarter of this year, or the first quarter of next. The loan upsizing carries the first phase of the project through to completion.
A 52-story luxury condo tower is planned for the second phase of the project, which is now shovel-ready, sources said. Construction of the condo tower is expected to start soon.
When fully completed, the 6.2-acre, $1 billion development will include 1,600 residential units, 30,000 square feet of retail, office space and a marina, comprising a city-within-a-city along the Miami River in the city’s Brickell neighborhood.
The highly anticipated project has been in the works for some time, and development along Miami River has exploded since MRC’s initial loan in 2021. The Real Deal reported in November that roughly 10,000 units were planned along the waterfront hot spot, with developers including Newgard Development Group, Urban-X Group, Gencom and Related Group among other heavy hitters all in the process of completing new projects there.
Sitting directly off the Miami River and between Interstate 95 and Southwest Second Avenue, the project is expected to span more than 4 million square feet in total. Directly alongside Jose Marti Park, the project is inspired by the beachfront district in Rio de Janeiro. In 2022, Chetrit Group announced it was partnering with Miami entertainment executive David Grutman, owner of popular local hotspots like LIV nightclub and the Goodtime Hotel, on the project’s food and beverage offerings.
Officials at Chetrit Group couldn’t be reached for comment. Madison Realty Capital and Galaxy officials declined to comment.
Additional reporting contributed by Brian Pascus.
Cathy Cuningham can be reached at ccunningham@commercialobserver.com
