Lenders pony up $900M for new coastal condos

Miami /
Aug.August 26, 2013 09:55 AM

Developers are planning to build about 150 new condo towers, offering a cumulative 20,200 units, in coastal South Florida.

Some 35 of these projects have secured nearly $900 million in loans, according to Peter Zalewski, head of the Condo Vultures condo consultancy. Developers’ and lenders’ appetite for new condos has surged with all but 2,000 of the nearly 49,000 developer units built on the coast during the last cycle sold off.

The biggest lender in South Florida is Alabama’s Regions Bank, with $250 million in loans, followed by New York-based NorthStar Realty Finance with $120 million and Deutsche Bank Trust Company Americas with $50 million, Zalewski said in a column for the Miami Herald, citing Miami-Dade County records.

In the absence of lending, South Florida developers have financed projects through the so-called South American model, where buyers plunk down as much as 50 percent of a unit’s purchase price as an upfront deposit.

The new influx of loans could reduce the prevalence of the model and permit more buyers to come to the table, Zalewski said. [Miami Herald]Emily Schmall


Related Articles

arrow_forward_ios
Abraham “Abie” Hidary and Eddie Hidary and Hidrock's David Huke with a rendering of the project planned for 1700 Northeast 164th Street (LinkedIn, RevereCRE)
Hidrock, Grupo Portland plan 400-unit rental tower in North Miami Beach
Hidrock, Grupo Portland plan 400-unit rental tower in North Miami Beach
Fortune CEO Edgardo Defortuna
5 minutes with developer, broker Edgardo Defortuna
5 minutes with developer, broker Edgardo Defortuna
Developer Jeffrey Soffer and the JW Turnberry resort at 19999 West Country Club Drive in Aventura (Getty, TripAdvisor)
Jeffrey Soffer’s Turnberry Isle resort scores $412M refi from Bank of China
Jeffrey Soffer’s Turnberry Isle resort scores $412M refi from Bank of China
Ecuadorian president, linked to US real estate, named in Pandora Papers
Ecuadorian president, linked to US real estate, named in Pandora Papers
Ecuadorian president, linked to US real estate, named in Pandora Papers
Brightline CEO Patrick Goodard with the Fort Lauderdale station (Brightline)
FECI obtains $200M in financing tied to sites near Brightline stations
FECI obtains $200M in financing tied to sites near Brightline stations
Guillermo Lasso and the Asia Brickell Key condo in Miami
Ecuadorian president’s alleged Florida real estate ties raise questions
Ecuadorian president’s alleged Florida real estate ties raise questions
South Florida lenders and landlords battle new coronavirus reality
South Florida lenders and landlords battle new coronavirus reality
South Florida lenders and landlords battle new coronavirus reality
Dan Gilbert and 100 El Bravo Way (Credit: Getty Images and Realtor)
Company tied to Quicken Loans buys Palm Beach estate for $25M
Company tied to Quicken Loans buys Palm Beach estate for $25M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...