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