The Real Deal Miami

Meliá Costa resort in Hollywood scores $70M loan to complete construction

Majority of buyers hail from Argentina, developer says

July 05, 2016 03:00PM
By Katherine Kallergis

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Melia Costa

Rendering of the Melia Costa Hollywood Beach Resort

UPDATED July 5, 5:45 p.m.: Liberty Grande closed on a $70 million construction loan to complete the Meliá Costa Hollywood Beach Resort, a $180 million condo-hotel. 

Rendering of the condo-hotel

Rendering of the condo-hotel

The six-story, 307-unit project is 85 percent sold, a difference of about 15 units since last May when the building topped off.

Eastern Union Funding senior loan consultant CJ Danziger and senior managing director Meir Kessner arranged the financing. Madison Realty Capital is the lender, according to a press release.

The condo-hotel marks the first project in the United States for Moses Bensusan, a Canadian developer. Bensusan told The Real Deal he’s aiming to hold a soft opening of the property at the beginning of next year.

International hotel operator Meliá Hotels will manage the resort at 777 North Ocean Drive in Hollywood Beach. The developer said Hollywood has a shortage of up to 10,000 hotel rooms, and he plans to develop more in the city.

Costa International Realty, led by Fernando Valdivieso, is the exclusive sales and marketing firm. A majority of buyers hail from South America, Bensusan said, with most of those coming from Argentina. The developer plans to travel to Chile, Argentina, Brazil, Paraguay and Colombia on a sales trip next week.

Greystone arranged a $22.5 million construction loan for the project in September, but a spokesperson for the company told TRD it was no longer involved in the development as of March of this year.

Units at the Hollywood condo-hotel, which will range from studios to one to three-bedroom apartments, will come equipped with full kitchens and energy efficient appliances, plus flat screen TVs and an automated valet parking system. Amenities include a spa/fitness facility, five restaurants, a business center, a gourmet coffee shop and a rooftop infinity pool (with a bar and grill). The development offers views of the Atlantic Ocean and Intracoastal Waterway.

Josh Zegen, co-founder and managing principal of Madison Realty Capital, said construction on both buildings is far along. Madison Realty Capital is the lender for the latest round of financing.

“We’re seeing a lot of opportunity given that there’s a pullback in the lending market,” Zegen told TRD.

Jimmy Buffet’s Margaritaville resort has contributed to a resurgence in activity in Hollywood, Danziger said. “That project was instrumental in Moses Bensusan moving forward with Meliá Costa Hollywood Beach Resort and has been a catalyst for further redevelopment in Hollywood,” he said in the release.

Other beachfront projects in Hollywood include Hyde Resort & Residences, Hyde Beach House and Oceanbleau.