An Overview of the New Luxury Oceanfront Condo Development in Miami Beach
In a notable development within the luxury real estate sector, Mast Capital, in collaboration with Starwood Capital Group, has officially announced the securing of a $390 million construction loan. This financing aims to support the creation of a luxury oceanfront condominium project in Miami Beach, a location celebrated for its vibrant lifestyle and premium real estate appeal.
Details of the Financing Arrangement
The construction loan is being provided by Eldridge Industries, a private credit firm that specializes in financing solutions. The project will feature a total of 73 units strategically situated at 5333 Collins Avenue, which is in the rapidly developing Mid Beach area. The architectural design of the development has been entrusted to the internationally acclaimed firm OMA, led by renowned architect Rem Koolhaas. The structure is planned to rise 17 stories above sea level, promising to offer stunning views and state-of-the-art amenities.
Construction Timeline and Sales Performance
Construction for this ambitious project is slated to commence in April 2024, with completion anticipated in 2027. The market response has been encouraging, with 75% of the units already pre-sold. The remaining offerings will start at a price point of $10 million, reflecting the high-end nature of this luxury development. However, the total sales amount for all condos has yet to be disclosed by representatives of Mast Capital, indicating that interest in the project remains robust.
Background on Mast Capital’s Acquisition
The site of the new development has an interesting history. In 2022, Mast Capital acquired a 1964 condominium building named La Costa, which occupies a 2.3-acre plot on Collins Avenue. This acquisition came in the wake of safety concerns following the tragic collapse of the Champlain Towers South condominiums in Surfside, prompting a reevaluation of building safety standards in the area.
Continued Investment in Luxury Developments
Perigon’s financing commitment to this new project comes a year after Mast Capital secured an impressive $600 million construction loan for another luxury condominium project: the Cipriani-branded tower located within Miami’s Brickell District. This trend highlights a growing confidence among lenders regarding the luxury condominium market in South Florida, despite the backdrop of increasing interest rates.
Market Trends in South Florida Real Estate
The willingness of lenders to extend substantial loans to luxury condominium projects is driven by strong pre-sales numbers. Recent financial commitments in the area further illustrate this trend, with loans amounting to $285 million for a branded project by Major Food Group, $424 million for an oceanfront condominium development by Related Group, and $527 million for a St. Regis condominium tower located in Brickell. These figures suggest a positive outlook for the luxury real estate segment as demand continues to thrive.
Conclusion
As Mast Capital and Starwood Capital Group embark on this transformative luxury condominium project in Miami Beach, the successful securing of significant financing underscores the ongoing appeal of high-end real estate. Amidst evolving market conditions and rising interest rates, the South Florida luxury sector appears resilient, driven by strong demand and significant investor confidence. The architectural vision combined with strategic location makes this project a noteworthy addition to Miami Beach’s evolving skyline.
FAQs
What is the location of the new luxury condo development?
The new luxury condominium project is located at 5333 Collins Avenue in the Mid Beach area of Miami Beach.
What is the estimated timeline for the project?
Construction is expected to commence in April 2024 and the project is projected to be completed by 2027.
How many units will the development feature?
The luxury condominium will consist of 73 units, with 75% already pre-sold at prices starting from $10 million.
Who designed the condominium project?
The project has been designed by OMA, an architectural firm led by renowned architect Rem Koolhaas.
What are the recent trends in South Florida’s luxury real estate market?
Despite rising interest rates, lenders are still willing to finance luxury condominium projects in South Florida, as evidenced by significant pre-sales and recent loan activities reported in the region.
