Mill Creek Residential and Group P6 scored a $100.9 million construction loan for a 306-unit apartment building in downtown Boca Raton.
The deal comes amid a continuing flow of financing for South Florida multifamily projects, despite elevated interest rates, skyrocketing insurance and slower lease-ups of rental buildings.
Mill Creek and Group P6, both based in Boca Raton, paid $18.3 million for the development site at 400 South Dixie Highway where they plan the 13-story Modera Boca, according to records.
The group of sellers include The Arbor Condominium Association, led by President Keith Backer. The 1.7-acre property now is home to the two-story The Arbor building completed in 1982 with office condos, which will be demolished.
Mill Creek and Group P6 terminated the condo association on Aug. 29, the same day they closed on the purchase and construction loan, according to records.
Designed by Corwil Architects, Modera Boca will include a 464-space garage, Zen garden and dog park. The Boca Raton Community Redevelopment Agency approved the project in July.
Mill Creek, led by William C. MacDonald, is a multifamily development and investment firm that had a nationwide portfolio of 152 communities with a combined 44,000 units completed or under construction at the end of first quarter, according to a Mill Creek news release issued in July on Modera Boca.
In the Ojus neighborhood near Aventura, the firm is developing Modera Aventura with a 15-story, 420-unit apartment building at 2681 Northeast 191st Street and 2660 Northeast 192nd Terrace. Last year, Mill Creek scaled down the planned second building to eight stories and 251 units from 15 stories and 420 units.
Group P6 –– led by Jose J. Padua, Jose E. Padua, Ignacio Diaz and Todd Richardson –– also plans a project in Ojus, a 21-story, 362-unit Live Local Act building at 2600 and 2630 Northeast 203rd Street.
Several projects are on tap in Boca Raton. At the city’s Tri-Rail passenger train station, Miami-based 13th Floor Investments plans an eight-story, 340-unit multifamily building with some apartments at affordable and workforce rents. The project will be at 680 West Yamato Road.
Contention has erupted over David Martin’s Terra and Frisbie Group’s proposal to lease city-owned land for a 1.5 million-square-foot government campus megaproject. Under a tentatively approved plan, Terra and Frisbie can build 912 residential units, 150 hotel keys, 350,000 square feet of offices and about 152,000 square feet of retail and restaurant space in exchange for developing a new city hall, police substation and community center. Opponents have pushed for having a say on the deal through a referendum.
In other recent multifamily construction loans, Estate Companies scored $60 million this month to build the 255-unit Soleste on the Trail garden-style complex at 7820 North Military Trail in Riviera Beach. Also this month, PPG Development, Isaac Khabie of Ark Ventures and Matt Press of EquiShares scored a $235 million construction financing package consisting of a loan and preferred equity investment for the 728-unit Palm Aire apartment complex at 1750 and 1775 Northeast 167th Street in North Miami Beach.