PMG scored a $413 million construction loan for its planned two-tower development in Brickell, marking the largest financing in South Florida so far this year.
Ares Management and Monarch Alternative Capital are teaming up to finance One Twenty Brickell Residences, the complex PMG plans to build at 120 Southwest Eighth Street, according to a press release. It follows just weeks after the developer and its partners landed a $215 million construction loan for a nearby project, 38 West Eleventh Residences Miami.
One Twenty Brickell will have one 37-story, 266-unit condo tower and one 41-story, 537-unit apartment tower, according to the release. Amenities in the towers will include fitness centers, co-working spaces, spa facilities, a pickleball court and kid’s club, the release shows.
JLL’s Christopher Peck and Brian Gaswirth arranged the loan on behalf of PMG.
One Twenty Brickell’s design team includes Sieger Suarez Architects and interiors firm Cotofana Designs, both frequent collaborators on PMG projects. All condos will come with separate office suites as well, the release shows.
Miami-based PMG, led by Ryan Shear, Dan Kaplan and Kevin Maloney, launched sales for the condos in March of last year, and 91 percent of the units are pre-sold, the release shows.
Construction will begin in May and is expected to be completed in 2028. Andy Warman, PMG’s director of capital markets, estimated the total sellout will reach about $275 million.
The loan tops the second largest construction loan so far this year, $390 million for Mast Capital and Starwood Capital Group’s planned Perigon oceanfront condos in Miami Beach.
Monarch is based in New York City and headed by co-founders Michael A. Weinstock, Andrew Herenstein and Chris Santana. Monarch partnered with Tourmaline Capital Partners to buy the 801 Brickell office tower in Miami for $250 million in 2023, the most expensive office deal in South Florida that year.
Ares, led by CEO Michael Arougheti and based in Los Angeles, is among the most active investors in South Florida. In August, Ares and Monarch partnered on providing a $178 million loan to PMG for a mixed-use project in Miami’s Wynwood. Warman said it helped that this latest project has a condo component, amid rising headwinds in the multifamily sector. It also behooved PMG to have an existing partnership with the lenders in a challenging environment for financing.
“It’s cliche, but real estate is such a relationship business still,” he said, “especially on the development side.”