HES Group scores loan for mixed-use hotel in Midtown Miami
Developers were seeking $120M in construction financing
HES Group just closed on a $9.5 million loan for its mixed-use hotel development in the Midtown Miami neighborhood, property records show.
The lender is 21 Brands S.A., which lists a Panama address.
HES has been quiet when it comes to Triptych, a 20-story tower planned for 3601 North Miami Avenue. Last year, JQ Group of Companies purchased a stake in the project. At the time, the developers said they were seeking $120 million in construction financing, including via EB-5 investors. Construction was set to begin soon after.
HES, managed by Francisco Arocha, was not immediately available for comment.
As planned, Triptych will include 38,000 square feet of retail, 41,000 square feet of offices, 300 parking spaces and a 252-room hotel under Hilton Worldwide’s Curio Collection.
The project scored city planning and zoning board approvals about two years ago. Records show HES affiliate Aventura Hotel Properties LLC purchased the property for $12.25 million in 2014. Two years later, JQ said it paid “in excess of $10 million” to buy both a piece of the development site and a stake in the project itself.
Financing, especially for hotel and condo developments, has become increasingly difficult to secure at this point in the real estate cycle.
HES owns and manages hotels, including the Aloft in West Palm Beach and the Hotel Indigo Brickell.