Related scores nearly $140M refi of downtown Fort Lauderdale tower

In October, Related Group hired Cushman & Wakefield to sell the property
By Keith Larsen | June 13, 2019 10:30AM

Icon Las Olas and Jorge Pérez

Icon Las Olas and Jorge Pérez

UPDATED, June 20, 11:41 a.m.: Related Group refinanced its Icon Las Olas in Fort Lauderdale to nearly $140 million.

The Miami-based development firm secured a $139.9 million loan from SunTrust Bank with Freddie Mac for its 44-story, 272-unit apartment tower at 500 East Las Olas Boulevard.

The loan comes after Related hired Cushman & Wakefield to market the development in October, according to a property memorandum obtained by The Real Deal.

The project was first proposed in 1999, but faced a number of hurdles – including the collapse of the housing market. Related and Rabina Properties broke ground on the building in 2015, and financed construction with a $105 million construction loan, also from SunTrust. It was completed as an apartment tower in 2017.

The property’s units average 1,516 square feet and rents range from about $3,000 to more than $7,500. Steve Patterson, president and CEO of Related Development, said the building is fully occupied.

Icon Las Olas features three restaurants totaling about 21,415 square feet: Etaru Japanese Bar + Grill, Salt Seven Modern Eatery & Lounge, and IT! Italy Café.

The high-end development would likely set a per-unit record for Broward County when it sells. In 2017, a joint venture between the Rockefeller Group and Stiles sold Amaray Las Olas in downtown Fort Lauderdale for $133.55 million, or $526,000 per unit.

At that per-door price, Icon Las Olas could sell for more than $143 million.

Related plans to break ground this year on another rental tower in downtown Fort Lauderdale similar to Icon Las Olas. A joint venture between Steelbridge Capital and Apollo Global Real Estate Management recently sold the site at 201 Southeast Sixth Avenue to Related for $12 million.

An earlier version of this story included details on the financing from property records. It has been updated to information from the lender.