UPDATED, Jan. 6, 11:15 a.m.: Developer Shahab Karmely closed on a $128 million condo inventory loan for an oceanfront development in Hallandale Beach, replacing the project’s $103 million construction loan, The Real Deal has learned.
Karmely’s KAR Properties secured the loan from Madison Realty Capital. It pays off debt that Apollo Commercial Real Estate issued in 2018.
The 38-story, 64-unit building, called 2000 Ocean, was completed in December. Developers typically use condo inventory loans to help cover carrying costs of unsold units, as well as to pay off construction loans.
A spokesperson for the development declined to disclose sales figures for 2000 Ocean. Closings are set to begin Jan. 14, the spokesperson said.
In 2018, when the developer secured construction financing, prices ranged from about $2.6 million to $4.4 million for typical units, and between $8 million and $12 million for penthouses. Remaining units start at $3.1 million up to more than $10 million for penthouses, according to the spokesperson.
Fortune Development Group is handling sales.
The building, at 2000 South Ocean Drive, was designed by Enrique Norten of TEN Arquitectos, with concept design by Kobi Karp. The Italian firm Minotti handled the common areas and furnishings. Amenities include two pools with cabanas, a spa, cafe, library, theater and entertainment room, according to a release.
Property records show the developer paid about $34 million for the site in 2014.
In Miami, Karmely owns a massive development site along the Miami River, as well as land in Wynwood. Daniel Loeb, the billionaire investor who runs Third Point LLC, an activist hedge fund, is a silent partner of Karmely, TRD reported in 2017.
Last year, Karmely’s KAR Properties and Edgardo Defortuna’s Fortune International Group teamed up to buy the remaining unsold condos at Brickell City Centre in Miami from Swire Properties.
On his Miami River site, Karmely paused plans for One River Point, a three-phase luxury condo development that was being designed by architect Rafael Viñoly.