Tyko’s $410M Construction Loan Sets Record for Miami’s Coconut Grove

Terra and AB Asset Management secured $410 million to build a boutique luxury condo development in Miami’s Coconut Grove neighborhood, the joint venture announced.

The financing from Tyko Capital will fund the Well Coconut Grove, a 194-unit development at  2835 Tigertail Avenue. Vertical construction, which got underway this week, is expected to be completed in the fourth quarter of 2028.

The recent debt — brokered by Walker & Dunlop — marks the largest construction loan in the history of Coconut Grove, a leafy, wealthy residential neighborhood. 

More than half of the units are under contract, with pricing starting at $1.5 million, according to the developers. One- to four-bedroom residences range between 960 and 4,200 square feet. Douglas Elliman is serving as the project’s brokerage.

The eight-story project will house 53,000 square feet of wellness-focused amenity space, including a 40,000-square-foot rooftop pool deck with a pickleball court. Arquitectonica served as the project’s architect, while Meyer Davis designed the interiors. 

In 2021, Terra paid $21 million for the 2-acre site, which held a single-story rental building, according to property records. Two years later, Terra and AB Asset Management landed $43 million in financing to begin site work. 

Also along Coconut Grove’s waterfront, Terra secured $286 million to build the three-building Park Grove luxury designed by Rem Koohas’s OMA between 2013 and 2018. More recently, in December, Allen Morris nabbed a $138 million construction loan from BDT & MSD Partners and BHI for a boutique \project that will include about 100,000 square feet of office space, 45,000 square feet of retail space and 18 condos. 

Tyko Capital, which has emerged as one of South Florida’s most prominent lenders since launching in 2023, is a frequent funder of Terra’s project. The credit platform, founded by Adi Chugh and backed by Elliott Management, provided $392 million for the construction of the convention center hotel in Miami Beach, $285 million for the Mr. C-branded hotel and condo project in West Palm Beach and another $285 million for the Major Food Group-branded condo tower in Miami. 

Julia Echikson can be reached at jechikson@commercialobserver.com.