Apollo Provides $172M in Construction Financing for 144-Unit Luxury Miami Tower
Real estate investment firm Sixth Street invested $56M in preferred equity into the capital stack
By Brian Pascus September 17, 2024 1:38 pm
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Apartment Investment and Management Company (Aimco), a publicly traded real estate investment trust (REIT), has secured $172 million in construction financing from Apollo to develop The Hamilton, a 144-unit luxury residential tower in Miami’s Edgewater neighborhood.
The deal includes $56 million in preferred equity from Sixth Street.
Located on the Miami waterfront at 560-640 NE 34th Street — directly facing Biscayne Bay and just south of the Julia Tuttle Causeway connecting greater Miami to Miami Beach — The Hamilton is a 38-story luxury tower that began development in 2022. The residences are expected to average 2,500 square feet, and the building’s ground floor will include 7,000 square feet of retail space.
Wes Powell, president and CEO of Denver, Colo.-based Aimco, noted in a statement that his firm spent years acquiring the land, securing capital markets financing and planning the project.
“We are thrilled to advance this exciting project and bring a truly unique rental experience to one of Miami’s fastest-growing and most desirable neighborhoods,” said Powell.
Marcos Alvarado, head of U.S. real estate at Sixth Street, spoke to Miami’s “strong macroeconomic tailwinds” when he noted the strong in-migration into the city. He also noted that the development itself provides “condominium-quality finishes in Miami’s rapidly evolving Edgewater submarket.”
“This waterfront development represents a significant step in expanding our multifamily footprint in the U.S., while partnering with Aimco, one of the nation’s premier multifamily developers,” said Alvarado in a statement. “We look forward to working with the Aimco team to bring this new residential project to life.”
Sixth Street has made 13 multifamily transactions, providing over $350 million of preferred equity into the multifamily sector, since 2022.
Brian Pascus can be reached at bpascus@commercialobserver.com
