The Real Deal Miami

Melo Group gets loan for Bay House

Florida Community Bank gives $39.2M mortgage for Edgewater condo project

April 02, 2014 09:45AM

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Bay House rendering

Bay House rendering

Developer Melo Group obtained a $39.2 million construction loan for its Bay House condo tower in Miami’s Edgewater neighborhood.

Florida Community Bank provided Melo with the financing in a transaction that closed Friday, according to a written statement from the developer. Construction of the 165-unit tower at 600 Northeast 27th Avenue is underway, with completion slated for early 2015. More than 80 percent of Bay House’s condos are presold.

Since most of the 38-story tower’s construction is being paid for with buyer deposits and Melo’s equity, the developer might not need to use the bank loan.

“We are not sure if we are going to need to tap into this source of funding to complete Bay House, but it is always good to get the endorsement of a reputable financial institution,” Melo principal Carlos Melo said.

Lenders are showing confidence in Edgewater’s viability. In January, Banesco USA Bank provided mckafka Development Group with a $16 million loan for the Crimson project and a group of lenders gave the Related Group a $31 million mortgage for Icon Bay. — Eric Kalis

  • real56

    serious questions. do these banks no anything about the real estate market or can any one get a construction / development loan. I swear its impossible to get a loan for 300K BUT FOR 50 , 100 MILLION all day they will give it you. Who the hell are these bank depending on to buy out every condo with the thousands of other not including already developed ones. Looks lime history does not teach people, or its just people are stupid.

  • real56

    know*

  • real56

    serious questions. do these banks know anything about the real estate market or can any one get a construction / development loan. I swear its impossible to get a loan for 300K BUT FOR 50 , 100 MILLION all day they will give it you. Who the hell are these bank depending on to buy out every condo with the thousands of other not including already developed ones. Looks lime history does not teach people, or its just people are stupid.

  • Really???

    Have you tried to rent or buy a condo? The prices have been shooting through the roof. There is clearly a lot more demand then there is supply. Maybe we’ll get over saturated in 4 – 5 years but no way we do it before then considering most of the stuff in the pipeline wont be here for years.

    • real56

      Rent has been shooting through the roof because more than 75 percent of Miami’s actual full time residents can not get a loan to buy a 1000 sqf 2/2 condo for $700K. When your average resident is making $50K Per year how is this going to fill up the condo sales at that luxury price. If a 2nd home buyer/vacation buyer or investors choose to go to a different country or state because they feel it is the next ” hot spot” this in turn will leave these pre construction condos empty and banks will loose. These developers are building not on economics but on a short term hype that investors with cash built up in miami. These cash buyer can live any where they like so when the fad is gone developers are screwed again. You have over 2000+ condos for sale from the last boom not including even close to the preconstruction. Developers have been al ready fined for inflating fake occupancy rate in pre constrcutions, and some are throwing in cars etc, that’s a bad sign. rent will be through the roof because no one can afford to get loan that big

  • real

    Rent has been shooting through the roof because more than 75 percent of Miami’s actual full time residents can not get a loan to buy a 1000 sqf 2/2 condo for $700K. When your average resident is making $50K Per year how is this going to fill up the condo sales at that luxury price. If a 2nd home buyer/vacation buyer or investors choose to go to a different country or state because they feel it is the next ” hot spot” this in turn will leave these pre construction condos empty and banks will loose. These developers are building not on economics but on a short term hype that investors with cash built up in miami. These cash buyer can live any where they like so when the fad is gone developers are screwed again. You have over 2000+ condos for sale from the last boom not including even close to the preconstruction. Developers have been al ready fined for inflating fake occupancy rate in pre constrcutions, and some are throwing in cars etc, that’s a bad sign. rent will be through the roof because no one can afford to get loan that large

  • Really???

    2000 condo are a drop in the bucket. We should be building at least 2000 units every year to keep up with growth. Over the last few years we dropped to 0. It’s going to take years to catch up with that pent up demand. Most of the condos going up now are in the $400k to $500k range. They’re buying with mostly cash. They can afford to rent them out for years at current rental rates and be fine.

    If you really think all these guys are going to pull your dreaming. You think somehow Miami isn’t just going to stop being desirable. Tell me where you can find downtown condos minutes away from a world class beach, and one of the best tourist destination for $400/sf???

    Of course we’ll overbuild like usual but the people buying aren’t leveraged and in a position to get burned. At most rental rates will flatten out in a few years. 10 year from now most people will be remembering the good old days when you could get a 2/2 in Brickell for $450k.

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