13th Floor, Key International Secure Financing to Build 327 Units in South Florida

Two South Florida development firms have started building a 327-unit project in Delray Beach thanks to new construction financing for the second residential phase of a 50-acre mixed-use development.

On Monday, 13th Floor Investments and Key International, along with CDS International Holdings and Wexford Capital, announced the $79.2 million construction loan from CIBC Bank USA for a multifamily development named Skye.

The project site is a few miles from the coast at 2350 South Congress Avenue in Palm Beach County, north of Boca Raton. Skye is expected to be completed in 2027 as the second housing project at the joint venture’s Parks at Delray complex.

MSA Architects designed Skye with studio, one-, two- and three-bedroom apartments ranging in size from 560 square feet to 1,410 square feet, along with three-bedroom townhomes ranging between 1,670 and 1,770 square feet. The property will also include a pool, a fitness center, coworking spaces, a lounge and a social club with a kitchen and bar, alongside other amenities.

Skye will join the 420-unit project named Savio, which was completed earlier this year and secured $139 million in refinancing last month, also from CIBC USA. 

“With Savio fully built and Skye now underway, we’re delivering a thoughtfully planned, highly amenitized residential community that reflects the growing demand for quality rental housing in Delray Beach and along the I-95 corridor,” Daryl Shevin, the chief financial officer of 13th Floor Investments, said in a statement. “Our partnership with CIBC Bank USA and our co-developers underscores the market’s confidence in this project and in Delray Beach’s long-term growth story.”

Any big investment activity in the small city of Delray Beach likely leans toward multifamily or housing development. For example, earlier this year, Related Companies paid $116.9 million for a multifamily complex in Delray Beach that was completed in 2023.

Meanwhile, Skye adds to 13th Floor’s active construction pipeline. The Miami-based firm is also developing a third residential tower with 432 units at the Link at Douglas project in its home city; a 398-unit community in Hallandale Beach; and a 383-unit development in Davie, Fla. The company has delivered more than 4,700 residential units across South Florida and expects to add more than 4,000 in the next few years.

CIBC Bank did not immediately return a request for comment.

Gregory Cornfield can be reached at gcornfield@commercialobserver.com.