Related Group, Rockpoint and Two Roads Development secured a massive construction loan for Rivage Residences, a planned luxury oceanfront condo project in Bal Harbour.
The developers closed on a $424 million loan from Adi Chugh’s Tyko Capital, according to a press release. Construction began in September, and the developers plan to complete the 24-story, 56-unit building at 10245 Collins Avenue in 2027. The developers launched sales of the project in early 2023, after completing a bulk buyout and condo termination of the previous building on the site.
The financing marks the largest condo construction loan to close in recent weeks in South Florida. This week, Witkoff Group and Ari Pearl’s PPG Development scored a $273 million construction loan for Shell Bay, a mixed-use luxury condo and hotel project in Hallandale Beach. Tyko Capital, Chugh’s private equity and credit investment management firm, also provided Related Group and Integra Investments with a $527 million loan for their St. Regis Residences, Miami condo project in September.
Though the financing market has been challenging, lenders are still funding condo projects because developers can tap into buyers’ deposits to fund construction, lowering the lenders’ risk.
The Pérez family’s Miami-based Related, Boston-based Rockpoint and West Palm Beach and Miami-based Two Roads said Rivage Residences has secured more than $100 million in presales in the last two months. The project marks the first major luxury condo built in Bal Harbour in more than a decade, according to the release.
Douglas Elliman is leading sales of the project, which is being designed by Skidmore, Owings & Merrill and interior design firm Rottet Studio. The units will be on the larger side, ranging from 3,300 square feet to nearly 13,000 square feet. Prices for the remaining units start at $10 million. The penthouse is on the market for $75 million.
Amenities are expected to include a fitness center, hammam spa, pickleball and paddle ball courts, a lounge and children’s playroom.
The new development condo market continues to surge, and Related, South Florida’s most prolific condo developer, has a number of projects in the works.
In Fort Lauderdale, Related, Tate Capital and Rok Acquisitions recently launched sales of the St. Regis Resort and Residences, Bahia Mar condo project. Elliman is also leading sales of the condos, with prices starting at $4.4 million for traditional units and $2 million for condo-hotel units.
In West Palm Beach, Related and BH secured approval in October for the joint venture’s Ritz-Carlton Residences, West Palm Beach, a 26-story, 138-unit condo planned for 1717 North Flagler Drive.