Miami Condo Loan Marks Milestone
By ROBBIE WHELAN
A group of lenders has agreed to make the first major construction loan for a condominium project in the Miami area since the crash, marking a milestone in the recovery of real-state financing market for condos.
Loans to build condo towers were common during the boom years, but the downturn left Florida with an enormous glut of inventory and financing for new development evaporated.
But now a group of lenders led by Birmingham, Ala.-based Regents Financial Corp. has agreed to lend $160 million to the developers of the Mansions at Acqualina, an ultraluxury, 47-story tower under construction in Sunny Isles Beach, near Miami. Condos at the project, which includes amenities such as a private movie theater, a cantilevered swimming pool and a Turkish-style spa, start at $7.75 million.
The loan is the first debt deal of more than $100 million for a new condo development since the housing boom, according to Scott Wadler, an analyst who covers the Miami market for brokerage HFF LP.
To be sure, the deal also shows that banks are still cautious about condos. The lender required the builder to have completed $320 million in presales, and stipulated 50% downpayments from buyers as a condition of the loan, said Michael Goldstein, president of the company…
via Miami Condo Loan Marks Milestone – WSJ.com