The Real Deal Miami

Melo scores $142M refi for Square Station apartments

Developer financed construction with $100M loan from BB&T in 2016
By Katherine Kallergis | December 14, 2018 05:30PM

Square Station and Melo Group principals Martin and Carlos Melo

Melo Group just closed on a $142 million refinance for apartments in Miami’s Arts & Entertainment District.

Freddie Mac is providing the 10-year, fixed-rate loan. Berkadia’s Miami acted as the seller servicer, selling the mortgage to Freddie Mac, according to a press release. Peter Mekras of Aztec Group arranged the financing, which is interest-only during the term of the loan.

Melo completed Square Station, a two-tower, 710-unit apartment development at 1424 Northeast Miami Place, in June and it’s now 95 percent leased. The developer is also building Art Plaza, two 34-story buildings with 667 multifamily units at 58 Northeast 14th Street. Melo scored an $85 million construction loan from Ocean Bank for that project this past summer.

For the Square Station loan, Aztec said it obtained quotes from pension funds, financial and life insurance companies, banks, and Fannie and Freddie Mac. The firm said the financing is one of the largest single-asset permanent loans for multifamily in South Florida.

Melo broke ground on Square Station in 2016 with a $103 million loan from BB&T. The project includes about 20,000 square feet of commercial space. Earlier this year, Melo said rents range from $1,500 to $2,700 a month.