Estate Companies landed a $78 million construction loan for a 347-unit apartment building in Davie, amid a record multifamily pipeline in South Florida.
South Miami-based Estate plans the eight-story Soleste Reserve 1 with some workforce-price units at 5079 Southwest 48th Street, according to the developer’s news release. Banesco USA provided the financing, which consists of a $6.5 million loan the bank issued in 2022, increased by $71.5 million, according to records.
Soleste Reserve I will consist of 94 studios, 165 one-bedroom apartments, 68 two-bedroom apartments and seven three-bedroom apartments, the release says. The building will have 13 live-work units on the ground floor. Units will range from 500 square feet to 1,100 square feet.
Estate will designate 15 percent of the units, or 52, as workforce housing.
Workforce housing generally targets households earning from 80 percent to 120 percent of the area median income. This means that at Broward County’s annual AMI of $89,100, a three-person household can earn from $76,000 to $114,000 to qualify for a unit.
Construction has not started yet, and is expected to take about two years, according to the release.
Adjacent to Soleste Reserve 1, Estate also plans an eight-story Soleste Reserve 2 building at 5081 Southwest 48th Street. It will have more than 300 units.
Estate paid $6.9 million for the Soleste Reserve 1 property in 2022 and $8.2 million in February for the Soleste Reserve 2 property, according to records. Each of the sites is 2.5 acres.
In April, the Davie Town Council approved the Soleste Reserve 1 site plan.
Led by Robert Suris and Jeffrey Ardizon, Estate is a multifamily developer with about 4,000 units and 153,000 square feet of commercial space on tap in South Florida, the release says.
In April, Estate completed the 23-story, 367-unit Soleste NoMi Beach tower at 16395 Biscayne Boulevard in North Miami Beach. Next door, it is developing the 28-story, 363-unit Soleste on the Bay tower at 16375 Biscayne Boulevard. In July, Estate landed a $72.5 million construction loan for the 321-unit Soleste Palm Station with a pair of eight-story buildings at 520 North Rosemary Avenue in downtown West Palm Beach.
South Florida’s multifamily market was supercharged from an influx of out-of-staters and a leasing frenzy from late 2020 through 2022. Developers seized on the bonanza and record rent growth by starting new projects. By year end, 23,863 units are expected to be completed, the most since at least 2002, Berkadia’s mid-year report showed. As a whole, nearly 35,000 units were under construction as of this summer.
The new supply is tempering demand. At some recently completed buildings, developers have offered concessions, a sign that the previously high demand has slowed.
Yet, construction financing for multifamily and other projects has continued to flow. Terra, led by David Martin, scored $170 million this month to build a 578-unit apartment complex near Dolphin Mall in Sweetwater. Clearline Real Estate, led by Jenny Bernell, landed $94.5 million last month to develop the 24-story, 427-unit Excel Miami Apartments at 1550 Northeast Miami Place in Miami’s Arts & Entertainment District.