The Real Deal Miami

Related closes $115M construction loan for Hyde Beach House Hollywood

41-story building, which launched sales in 2015, will have 265 resort-condo units and 77 condos
By Katherine Kallergis | June 06, 2017 01:45PM

Rendering of Hyde Beach House. Inset: Jorge Perez

Updated 12:10 p.m., June 7: The Related Group just closed on a $115 million construction loan for Hyde Beach House in Hollywood, property records show.

The developer secured the financing in an increasingly tight lending environment for condo construction in South Florida. Guggenheim Corporate Funding LLC, an affiliate of the New York-based investment and advisory firm Guggenheim Partners, is the lender. Related’s 4000 South Ocean Property Owner LLLP is the borrower.

Related Vice President Eric Fordin told The Real Deal in December that the developer was in talks with a lender to close on a loan exceeding $100 million for the project, a 265-resort-condo unit and 77-condo project at 4000 South Ocean Drive. It was about 70 percent sold at the time with prices ranging from $590,000 to $1.3 million. Related Realty is handling sales. The Miami-based developer could not immediately be reached for comment.

The project launched sales in July 2015. Related partnered with 13th Floor Investments and Key International on Hyde Beach House, but both 13th Floor and Key International are no longer involved in the project, a spokesperson told The Real Deal.

The 41-story building is being designed by Cohen, Freedman, Encinosa & Assoc. Architects, with interiors by Brazilian designer Debora Aguilar. Amenities will include a beach club, pool deck, restaurant, indoor racquetball court, outdoor theater and more. Owners of resort units can use their units 150 days out of the year, while condo owners will have unrestricted use of their units. The deposit structure includes 10 percent at reservation, 10 percent at contract, 20 percent at groundbreaking, 10 percent at top-off and the remaining 50 percent at closing, according to a fact sheet.

The developer bought the 2.4-acre site out of foreclosure in 2015, property records show.

Related has zeroed in on Hollywood Beach with Hyde Beach House and Hyde Resort & Residences, which together are valued at a combined $620 million. Related, co-developer Fortune International Group and Sbe hosted a grand opening of Hyde Resort earlier this year, complete with a performance by the Gipsy Kings and a live-streamed demolition of the Hyde Beach House site. Hyde Resort, which is across the street at 4111 South Ocean Drive, fronts the beach.

An earlier version of this story named 13th Floor Investments and Key International as partners on the project. Both firms are no longer involved, a spokesperson said.