Catalfumo Lands $340M to Build Ritz-Carlton Condo in Palm Beach Gardens
Madison Realty Capital provided the funds
By Julia Echikson May 3, 2023 4:07 pm
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Catalfumo Companies scored $340 million in financing from Madison Realty Capital to build The Ritz-Carlton-branded condo development in Palm Beach Gardens, Fla. The deal is South Florida’s largest construction loan since the Federal Reserve began raising interest rates in March 2022.
Situated on a 11-acre site with 850 feet of frontage along Intracoastal Waterway, at 2200 PGA Boulevard, the project is set to include 106 units across three buildings, as well as a 29-boat slip marina.
Since launching sales in February, the project has already garnered $75 million in sales, according to Daniel Catalfumo, founder of Palm Beach Gardens-based Catalfumo Companies. Asking prices for condo units range between $4 million and $8 million.
“The Ritz-Carlton Residences, Palm Beach Gardens meets the rising demand for luxury residences in the rapidly expanding North Palm Beach real estate market,” Josh Zegen, managing principal of Madison Realty Capital, said in a statement.
Catalfumo represented his development firm directly with Madison Realty Capital. The deal closed in 60 days. Construction is set to begin in late summer 2023 with completion expected in 2025.
Catafumo’s loan comes as the Federal Reserve has incrementally raised interest rates over the past year, most recently up to 5.25 percent — marking the highest level since 2007.
The hikes have tightened the lending market, making it more difficult and expensive for developers to secure funding. In response, some developers have opted to start vertical construction before securing financing or to take out small loans with conservative loan-to-project cost ratios.
Before the Federal Reserve began raising rates to combat inflation, South Florida’s largest construction loans included Terra’s $345 million mortgage for the Five Park condo project in Miami Beach and Royal Palm Companies’ $340 million loan for Legacy Hotel & Residences, a 50-story mixed-use building in Miami Worldcenter.
Julia Echikson can be reached at jechikson@commercialobserver.com.
