Privé developers get $102M construction financing boost

Prive at Island Estates on Jan. 26 (Credit: Katherine Kallergis)
Prive at Island Estates on Jan. 26 (Credit: Katherine Kallergis)

UPDATED Jan 26 4:10 p.m.: The developers of Privé at Island Estates in Aventura secured $102 million in financing, a milestone for the contentious project as it nears its summer 2017 delivery date. 

New York-based Maxim Capital along with Austin-based Prophet Capital Asset Management are providing the loan to the luxury condo project’s developers, Gary Cohen and BH3’s Greg Freedman, Dan Lebensohn and Charles Phelan, according to a press release.

The financing is in addition to the $25 million Maxim, which specializes in short-term lending, lent in late 2015. Prophet has more than $3.2 billion under management, the developers said.

Privé has been shopping around for construction financing. Several months ago, The Real Deal acquired a memorandum sent by the developer to lenders requesting $147 million in construction debt.

The 160-unit development is now more than 70 percent sold with more than $300 million under contract, according to the developers. Units start at $2.1 million.

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Privé, on an 8-acre island at 5000 Island Estates Drive, topped off in November at 16 stories – much to the chagrin of a group of neighboring homeowners who have opposed the project. Over the last two years, opposing residents sued BH3 and Cohen to stop the Privé project. They alleged the developers only have the right to build single-family homes, and stalled construction from starting in 2015 with a lawsuit over sidewalks, building permits and development rights.

A trial scheduled for mid-November has been delayed. In a statement, Susan Raffanello, an attorney with Coffey Burlington, who represents the homeowner, said the loan “has absolutely no effect on the litigation, but potentially increases the risk to the defendants.”

In August, BH3 and Cohen sued 11 Williams Island homeowners, alleging they have violated a 34-year-old settlement agreement prohibiting them from objecting to any new projects on the island.

When it’s completed, Privé will have 70,000 square feet of amenities, including a fitness center with a steam room and sauna, library, wine room, cigar room, two pools and Jacuzzis, running paths and a private marina. Sieger-Suarez designed the building, which also features Interiors by Steven G. – Katherine Kallergis