Related Group Raises $400M From Madison Realty to Build 50 Fisher Island Condos
By Julia Echikson June 12, 2024 10:27 am
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A Related Group-led joint venture scored $400 million from Madison Realty Capital to build a luxury condo on Fisher Island, an enclave off Miami Beach that’s one of the country’s wealthiest ZIP codes.
The financing — one of South Florida’s largest construction mortgages to close this year — covers the Residences at Six Fisher Island, a 10-story condo building with 50 units at 6 Fisher Island Drive. Construction is expected to begin this summer and be completed in 2026.
“Fisher Island is one of the most exclusive communities in the country creating strong demand for new residences, yet offers limited new development. The Residences will deliver the first newly built property on the island since 2019,” Josh Zegen, managing principal and co-founder of Madison Realty Capital, said in a statement.
The development joint venture, which also includes Israeli billionaire Teddy Sagi, BH Group and Wanxiang America RE Group, purchased the 6.5-acre site, one of the last remaining developable parcels on Fisher Island, for $123 million in 2022. The construction mortgage will replace the $85 million acquisition loan Madison Realty Capital provided.
So far, the Kobi Karp Architects-designed project has generated more than $500 million in pre-sales, which included a $150 million deal for two penthouses that’s under contract, according to the joint venture. For the remaining inventory, the joint venture is targeting prices north of $4,000 per square foot.
Berkadia South Florida’s Scott Wadler, Michael Basinski, Patrick Johnson, Mitch Sinberg, Brad Williamson and Matthew Robbins arranged construction financing.
Despite a slowdown in the debt market due to high interest rates, the South Florida luxury condo market has continued to secure construction financing, thanks in part to strong pre-sales.
In February, Mast Capital scored South Florida’s largest construction loan — $600 million — for Cipriani-branded luxury development complex in Brickell.
A month later, Bank OZK provided $328 million for Related Group’s Baccarat Residences condo tower in Brickell and $172 million to Jackie Soffer’s Turnberry for a condo within the SoLé Mia master development in North Miami.
Julia Echikson can be reached at jechikson@commercialobserver.com.
