A consortium of three developers scored a $115 million refinancing for their recently completed 279-unit apartment tower in Miami’s Edgewater neighborhood.
Camino Capital Management, Lujeni and Building Block Realty obtained the debt for the 32-story Metro Edgewater from MF1 Capital, according to a news release from the borrower’s brokers.
Jesse Wright and Elliott Throne of JLL represented the borrowers. Michael Squires and Phil Pesant represented MF1.
Completed this month, Metro Edgewater is at 444 Northeast 31st Street.
Project sponsors Camino Capital and Lujeni own the building and land, according to Carlos Ortiz of Building Block. Building Block, led by Ortiz, worked on the land purchase, permitting and development.
The developers used the new financing to pay off a $55 million construction loan borrowed in April of last year, and have yet to determine how they will use the balance of the funds, Ortiz told The Real Deal. Madison Realty Capital was the lender of the construction debt.
The tower is 20 percent leased, Ortiz said. He declined to disclose terms of the refinancing.
A source familiar with the deal said that this is floating-rate debt that would be used to bridge the gap until the building is leased up.
The debt is part of a package of loans MF1 issued to 21 multifamily properties across the U.S. that are in a transitional state, meaning cash flow is expected to increase once and if the borrowers execute on their business plans, including leasing up the properties. The loans have initial terms ranging from 24 to 36 months, with the borrowers buying interest rate caps limiting rates from 3.5 percent to 6 percent, according to Morningstar Credit.
MF1, a debt fund that’s a joint venture between Limekiln Real Estate and Berkshire Residential Investments, seized on the nationwide multifamily boom in 2021 and last year. Its niche is short-term, floating-rate multifamily loans for borrowers that are working on increasing properties’ cash flow.
Founded in 2019, MF1 has provided over $19 billion in multifamily debt, according to JLL’s news release. The New York-based debt fund is led by Scott Waynebern.
Not much is known about Camino Capital, Lujeni and Building Block. Camino, based in Washington, D.C., is a family office that partners on real estate projects, according to its LinkedIn. It’s led by Noël Bejarano. Lujeni is led by South Florida-based developer Daniel Rincon, state corporate records show. Building Block’s Ortiz also is president of Prodesa International, according to his LinkedIn.
Multifamily and condo developments have exploded in Edgewater over the past decade.
Metro Edgewater is near Related Group’s completed four-tower Paraiso condo complex that also includes a restaurant building and seven four-story townhomes.
Pacific Star Capital, a California-based firm led by Aria Mehrabi, wants to develop a Denny’s restaurant and parking lot at 3600 Biscayne Boulevard into an 18-story, 175-apartment building. The project, called 3600 Biscayne, would include nearly 37,000 square feet of retail and 366 parking spaces.
Denver-based Aimco plans a 60-story, 241-unit multifamily tower with 5,000 square feet of commercial space at 560, 600, 610, 620, 630 and 640 Northeast 34th Street. The site is south of the Hamilton on the Bay apartment building at 555 Northeast 34th Street, which Aimco also owns.
Also, Oak Row Equities and Alex Karakhanian’s Lndmrk Development plan a 38-story, 324-unit apartment tower on the northeast corner of Northeast 29th Street and Northeast Fourth Avenue.