Estate Investments scores loan for Palmetto Bay apartments; may market as Opportunity Zone play

$34M loan is for construction of 200-unit Soleste Bay Village

TRD MIAMI /
Oct.October 24, 2018 02:45 PM

Estate investments group CEO Robert Suris, Soleste Bay Village

Estate Investments Group just secured a $34 million construction loan for its 200-unit Soleste Bay Village in Palmetto Bay, which could be sold to an investor seeking to benefit from a federal tax incentive program.

The Miami-based development group scored the loan from Banesco USA and Spain-based Abanca for the property at 18301 South Dixie Highway, according to a press release.

Miami-based Estate Investments Group’s Robert Suris said the site could qualify under the federal Opportunity Zone program, which gives developers and investors big tax advantages for investing in certain areas throughout the country.

Suris said his accountants told him if another investor were to purchase the property before its completion date that investor could potentially gain the tax advantages for investing in a qualified Opportunity Zone project.

However, since construction has already begun on the project, if Suris and Estate Investments Group finishes building it, they would not qualify to receive tax benefits from the program under the program’s new guidelines.

The Palmetto Bay property highlights some of the uncertainty and complications around the Opportunity Zones program and what type of projects would qualify to receive the benefits. The first set of rules for the program were announced Friday.

Construction on Soleste Bay Village is already underway and the project is now at the second level, Suris said. Pre-leasing is set for late 2019 and move-ins are slated for early 2020 if the group decides not to sell the project.

The five-story rental community will include nearly 16,000 square feet of ground-floor-retail, which will include commercial tenants and live-work units, as well as 297 parking spaces. The rental property will include studio, one, two, and three-bedroom units ranging from 600 square feet to 1,100 square feet, with monthly rents starting in the $1,200’s.

EIG has five additional Soleste-branded properties throughout South Florida. These include the 338-unit Soleste Twenty2, the 330-unit Soleste Blue Lagoon, the 306-unit Soleste Alameda, the 350-unit Soleste Grand Central and the 99-unit Soleste Park View and the 251-unit Soleste Uptown.

The 350-unit Soleste Grand Central recently received approval from Miami’s Urban Design Review board and sits in an Opportunity Zone. Since the project hasn’t broken ground, Suris said the project would qualify for the program under the existing rules. He said since gaining the approval, the development group has been getting a number of calls from investors throughout the country interested in investing in the property.


Related Articles

arrow_forward_ios
Asi Cymbal and a rendering of the project

Asi Cymbal closes on multifamily dev site in Dania Beach

Asi Cymbal closes on multifamily dev site in Dania Beach
Masoud Shojaee and a rendering of Shoma Village 

Shoma Group scores $67M loan for mixed-use Hialeah project

Shoma Group scores $67M loan for mixed-use Hialeah project
Housing Trust Group CEO and President Matt Rieger and renderings of the project (City of Hollywood)

Hollywood approves multifamily affordable housing project

Hollywood approves multifamily affordable housing project
Brad Hargreaves

Common managing Nuveen apartment buildings in Fort Lauderdale, LA

Common managing Nuveen apartment buildings in Fort Lauderdale, LA
Housing Trust Group CEO and president Matt Rieger and Hudson Village renderings

HTG scores financing for Hollywood affordable housing project

HTG scores financing for Hollywood affordable housing project
J.C. de Ona, Southeast Florida Division President of Centennial Bank, Amelia Mixed Use rendering

Prestige Companies nabs loan for mixed-use project in Hialeah

Prestige Companies nabs loan for mixed-use project in Hialeah
Southland Mall in Cutler Bay, Hazem Ben-Gacem, Investcorp’s Co-Chief Executive Officer (Credit: Google Maps)

Wells Fargo says mismanagement by Southland Mall owner contributed to downfall

Wells Fargo says mismanagement by Southland Mall owner contributed to downfall
Al Patel, President of Baywood Hotels and 1101 Northwest 57th Avenue (Credit: Google Maps)

Baywood scores $31M loan to build hotel near Miami International Airport

Baywood scores $31M loan to build hotel near Miami International Airport
arrow_forward_ios

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

Loading...