PMG, Greybrook score $235M refi of downtown Miami project

UPDATED, Sept. 30, 12:45 p.m.: Property Markets Group and Greybrook secured a $235 million refinancing for the Elser Hotel & Residences condo tower in downtown Miami.

Franklin BSP Realty Trust is the lender, with the debt fund RMWC also providing a $25 million mezzanine loan for the recently completed 49-story, 646-unit condo-hotel at 398 Northeast Fifth Street, according to a press release. New York-based Franklin BSP, formerly known as Benefit Street Partners Realty Trust, is a real estate investment trust with more than $6.3 billion of assets.

Centennial Bank and Square Mile Capital provided the developers with $161.5 million in financing in 2019. The refinancing pays off the $114.5 million principal balance and provides new financing for the developers, records show.

PMG, led by Ryan Shear, Kevin Maloney and Dan Kaplan, and Greybrook, previously planned to build and operate the project as rentals called Society Biscayne. They converted it to short-term rental friendly condos earlier this year due to increased demand for that type of unit.

The Elser, which includes over 19,000 square feet of amenities, 32,000 square feet of office space and about 5,000 square feet of retail space, was built on the same block as the planned Waldorf Astoria Residences Miami, and just north of the PMG-developed X Miami rental tower.

PMG and Greybrook launched condo sales this summer with prices starting in the $600,000s. Highgate will manage the short-term rentals. The units range from 400-square-foot studios to 1,300-square-foot three-bedroom units.

Amenities include a double level amenity deck with a pool, co-working spaces, gyms, a lobby and cocktail bar from the Jaguar Sun owners, and a Cafe Domino coffee lounge.

PMG paid $55 million for the property in 2018.