Naftali Secures $465M Construction Loan in Downtown Miami

South Florida’s in-migration has slowed from the heights of the pandemic-driven surge, but another developer has extended a streak of massive residential financing deals in Miami over just the past few weeks.

Commercial Observer can first report that Miki Naftali’s Naftali Group on Tuesday closed the latest nine-figure debt package to build a 67-story luxury residential tower that’s underway within the Miami Worldcenter master development in Downtown Miami’s urban core. The new $465 million financing includes $235 million in C-PACE (Commercial Property Assessed Clean Energy) debt from Nuveen Green Capital, and $230 million in traditional construction loans from Bank Hapoalim (BHI).

The project at 1016 Northeast Second Avenue, called JEM Private Residences, will add about 535 apartments on the bottom floors, 259 condos starting on the 43rd floor and a resort-style amenity suite. Designed by Arquitectonica and Rockwell Group, the development will also feature a 60-foot outdoor pool, a sky lounge, a fitness center, a spa suite, coworking space and a spirits-tasting room.

Naftali said hundreds of construction workers are working at the development site, which he described as one of the only walkable destinations in Miami with world-class retail, museums and cultural institutions, entertainment and dining. Construction started in April 2024 and is on track to be completed by the final quarter of 2027.

“It is the center of all major transportation, like the Brightline, Metrorail and the Miami International Airport,” Naftali, the company’s Chairman and CEO, said in a statement. “With JEM Private Residences, we’re bringing a new level of design, quality and attention to detail that defines our work, creating a building that will stand the test of time in the Miami skyline.”

It’s the largest C-PACE-financed multifamily project to date in Florida, according to Alexandra Cooley, CEO and chief investment officer of Nuveen Green Capital.

“By leveraging C-PACE’s low-cost, long-term financing and structuring flexibility, in combination with BHI’s senior construction loan, Naftali was able to finance their project cost-effectively,” Cooley added. “This record-setting transaction . . . underscores the continued adoption of C-PACE by institutional borrowers to fund their large-scale projects.”

Ilana Druyan, senior vice president and head of originations at BHI, also said South Florida remains a key market to the bank’s growth strategy.

Naftali’s financing package follows a surge in big residential debt deals in Miami that coincidentally closed or were announced this month. Ytech secured $565 million to build a 70-story luxury condo tower on Brickell Avenue; Gil Dezer’s Bentley-branded condo development in Sunny Isles Beach secured a $630 million construction loan; David Martin’s Terra secured $238 million to refinance a mixed-use development still under construction in Bay Harbour Island; and Namdar Group secured $460 million for a two-tower multifamily development in Downtown Miami.

Also, last month, Newgard Group and Two Roads Development secured a $513 million construction package for a two-tower condo complex along the Miami River.

Furthermore, at the start of this year, Naftali secured $40 million in C-PACE financing from Nuveen Green Capital, and in 2024 secured $35 million from BHI, both for JEM Private Residences.

“Naftali Group’s presence in Miami is growing, and we’re pleased to support their ongoing efforts to expand compelling inventory throughout the Miami market,” Druyan said.

New York City-based Naftali has managed more than 35 projects valued at more than $15 billion, including a 45-story condo tower in Fort Lauderdale. Naftali’s debt arm also closed its first deal in South Florida recently with a $62 million construction loan in Hollywood. Meanwhile, Nuveen Green Capital has originated $4 billion in sustainable commercial real estate financing.

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