Support for new projects has slowed as lenders take stock of the post-COVID economy. But Miami Beach’s 57 Ocean project got a head start, thanks to a $ 58.5 million construction secured by OZK Bank, said developer Marcelo Kingston, Managing Partner of MultiplanREAM.
“Bank OZK is delighted to finance the final phases of construction of 57 Ocean and to work with such a reputable developer,” said Greg Newman, general manager of loan origination at Bank OZK. “The strong financial capacity of MultiplanREAM, associated with such a unique real estate asset, illustrates the high standards that Bank OZK constantly seeks in its project finance,” he said in a statement.
Based in Arkansas Bank OZK is a familiar South Florida player. Typically, this requires developers to invest significant equity capital before the bank funds their loan.
The 18 story luxury condominium located at 5775 Collins Ave. has approximately 40 units, or 55%, of its 71 reserved units.
The loan process began during the last week of March; JLL Capital Markets arranged the loan. A process that could typically take 90 days only took 30 days due to a lull in activity, Kingston said.
Construction began in April 2019; contractors have now completed 12 floors of construction, and the summit is slated for August, even the number of workers on the job has been reduced due to COVID-19 restrictions. The project is on schedule for delivery in September 2021.
“It’s a challenge to get funding during this time,” said Kingston. “But we are fortunate to be advanced in construction, to have asset financing and a residential condo project. All of this meant less risk for the lender.
The loan allows the development company to complete construction of 57 Ocean and “be open to any new condominium opportunities that may arise during this time,” Kingston said.
This story was originally published May 4, 2020 3:00 p.m.