Despite a slowing real estate market, the developers of a massive, mixed-use project in downtown Miami’s Park West district secured an $89 million construction loan for a rental apartment tower.
The loan from Fifth Third Bank and Santander Bank is a sign of confidence in Miami Worldcenter, a $1.7 billion project that will include condos, retail, hotels, apartments and a convention center spread over 27 acres. The project, first proposed in 2008 but derailed by the financial crisis, is now moving in a positive direction: vertically.
Construction has now begun on the 43-story, 444-unit apartment tower, called Seventh Street Apartments. The rental tower’s developers are CIM Group and Falcone Group. It is expected to be completed in the fall of 2018, along with an under-construction 60-story luxury condo tower and open-air shopping center.
Loans for multifamily housing have been hard to come by in South Florida. Banks are wary of overbuilding and slowing residential sales. As traditional financial institutions bow out, private lenders are stepping in, according to the Daily Business Review.
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Nitin Motwani, managing principal of Worldcenter’s master developer, said in a statement that the “financing underscores the strength of Seventh Street Apartments’ location within Miami Worldcenter and in the heart of downtown, the credibility of our development team, and the surging demand for transit-oriented apartments we’re experiencing in downtown Miami.”