PMG Scores $668M Record Construction Loan for Waldorf Astoria Tower in Miami
By Julia Echikson June 14, 2024 10:31 am
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Here comes another record South Florida construction loan: A PMG-led joint venture scored $668 million from Bank OZK (OZK) and Related Fund Management to complete the Waldorf Astoria Hotel & Residences Miami, which could become one of the tallest U.S. buildings south of New York.
The financing tops Mast Capital’s $600 million construction loan for the Cipriani-branded condo complex, which closed in February and previously held the record for landing the region’s largest construction loan.
The Waldorf Astoria partnership — which includes Hilton, Canadian private equity firm Greybrook, Mohari Hospitality and S2 Development — broke ground on the 1,049-foot-tall development back in 2022.
Located at 300 Biscayne Boulevard in Downtown Miami, the 100-story development will house a 205-room luxury hotel and 387 condo units, of which 90 percent have sold, according to a representative for PMG.
The debt includes $425 million from Bank OZK as the sole, senior secured lender, according to a representative for the bank. Related Fund Management funded the remaining balance.
JLL (JLL)’s Christopher Peck, Chris Drew, Brian Gaswirth, Jimmy Calvo and Mateo Bolivar brokered the debt. Law firms Kramer Levin Naftalis & Frankel and Saul Ewing represented PMG and Greybrook.
PMG purchased the 1-acre site for $80 million in 2014, according to property records. This week, construction workers completed the foundation pour over the parcel and will soon begin vertical construction, which is slated for completion in the second quarter of 2028.
“PMG’s ability to secure financing for a project as significant and iconic as the Waldorf Astoria Hotel & Residences in today’s atmosphere once again underscores the confidence the capital markets have in our platform at large,” Dan Kaplan, managing partner at PMG, said in a statement.
Despite a slowdown in the debt market because of high interest rates, Miami developers have managed to plow away, securing gargantuan construction mortgages, in part thanks to strong pre-sales.
Just this week, Related Group secured $400 million from Madison Realty Capital for a luxury condo on Fisher Island, a wealthy enclave off the southern tip of Miami Beach.
In recent months, Bank OZK has served as South Florida’s most active lender, having originated over more than $1 billion in construction loans for both condo and mixed-use projects. These loans include $328 million for another Related Group development, the Baccarat Residences condo tower in Brickell, and $172 million to Jackie Soffer’s Turnberry for a condo building within the SoLé Mia master development in North Miami.
Update: The article was amended to include the breakdown of the financing.
Julia Echikson can be reached at jechikson@commercialobserver.com.
