Terra-Led JV Lands $507M Construction Loan for South Beach Condo Before Pre-Sales
By Julia Echikson October 8, 2026 12:45 pm
reprints
A Terra-led partnership has scored a $507 million construction loan for a waterfront condo tower in Miami Beach — even before launching sales.
The financing from Adi Chugh’s Tyko Capital covers the 28-story, 106-unit development at 1250 West Avenue, along South Beach’s western waterfront facing Biscayne Bay.
In an unusual move for a luxury condo development in South Florida, pre-sales will start next year. Typically, lenders require developments to hit a certain sales threshold before they will provide construction financing.
“Miami Beach continues to be one of the most supply-constrained luxury markets in the country, and opportunities to build on the bay at this scale are rare,” Chugh said in a statement. Tyko Capital’s debt platform is backed by financial heavyweight Elliott Management.
The development will replace a 15-story condo building that was built in 1964. Terra, led by David Martin, bought out the 238-unit building for $120 million last year, The Real Deal reported. (Developer Michael Stern is no longer involved in the project.)
To receive approval for the 330-foot-tall tower from Miami Beach officials, the developers also acquired and demolished the Bikini Hostel across the street, with plans to turn it into a public park.
The luxury condo development, which does not have a brand attached, will include rooftop pools, an underground parking garage, a padel court, and ground-floor retail space.
The development partners include GV Development, the firm of Italian influencer Gianluca Vacchi, LORE Development Group, the Miami-based partnership between Leste Group and Brazilian real estate fund Opportunity Fundo de Investimento Imobiliário, as well as Rafi Gibly’s RG Development Group.
The project adds to Terra’s track record in Miami Beach, where it’s building the 800-room hotel next door to the convention center after landing a $392 million loan, also from Tyko Capital. In 2024, the firm completed Five Park, a 48-story luxury condo tower near the entrance to the MacArthur Causeway.
Julia Echikson can be reached at jechikson@commercialobserver.com.
