Mast Capital Secures Prime Oceanfront Property in Miami Beach for $390 Million

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Introduction to Luxury Real Estate Development in Miami Beach

The luxury real estate market in Miami Beach continues to thrive, with significant investments and developments taking place in the coastal city. Recently, a notable joint venture between Mast Capital and Starwood Capital Group has marked its presence in the market by securing a substantial construction loan. This financial backing is aimed at a luxurious oceanfront condominium project, which is anticipated to become a significant addition to Miami Beach’s skyline.

Details of the Construction Loan

The venture has successfully acquired a $390 million construction loan from Eldridge Industries. This funding plays a crucial role in moving forward with the development of a high-end, 73-unit condominium building located at 5333 Collins Avenue in the Mid Beach area. Renowned architect Rem Koolhaas, through his firm OMA, has designed the impressive 17-story structure, which is expected to showcase both luxury and contemporary design principles.

Construction Timeline and Pre-Sales

Construction on this ambitious project is slated to begin in April 2024, with an estimated completion date set for 2027. As of now, the development has already seen considerable interest, with 75% of the available units pre-sold. The remaining units are expected to command prices starting at $10 million, reflecting the high demand for luxury properties in the area. However, Mast Capital has not yet disclosed the total sales amount for the entire condominium project.

Background of the Development Site

The site for this new development has an interesting history. In 2022, Mast Capital acquired a 1964 condominium building situated on a 2.3-acre parcel on Collins Avenue. The previous structure, named La Costa, had been deemed unsafe following the catastrophic collapse of the Champlain Towers South building, located not far from Surfside. The decision to replace La Costa with a luxury condominium reflects both a response to safety concerns and the ongoing demand for high-end living spaces in Miami Beach.

Previous Financing Efforts and Market Trends

The recent financing secured by Perigon is a continuation of Mast Capital’s favorable relationship with lenders, particularly in the luxury real estate sector. This follows a significant $600 million construction loan from the previous year, aimed at a Cipriani-branded tower in Miami’s Brickell District. Notably, the willingness of lenders to provide construction loans for such luxury projects in South Florida remains persistent despite the challenges posed by rising interest rates.

Market Outlook for Luxury Condominiums

The luxury condominium market in South Florida is buoyed by strong pre-sales, indicating robust demand among affluent buyers. Recent years have seen additional high-value loans being issued for projects, including $285 million for a major food group-branded project and $527 million for the St. Regis branded condominium tower in Brickell. These investments underline the continuing appeal of luxury residential developments in vibrant areas like Miami Beach and Brickell.

Conclusion

The joint venture between Mast Capital and Starwood Capital Group, supported by substantial financing, illustrates the ongoing vitality of the luxury real estate market in Miami Beach. This new oceanfront condominium development not only symbolizes architectural innovation—spearheaded by a prominent architect—but also signals an enduring confidence in the region’s real estate landscape. As construction commences and sales progress, Miami Beach appears poised for a significant enhancement in its luxury housing offerings, appealing to discerning buyers and investors alike.

FAQs

What is the timeline for the construction of the new condominium development?

Construction is expected to begin in April 2024 and is projected to be completed by 2027.

How many units will the new condo development have?

The development will consist of 73 luxury condominium units.

What is the starting price for the remaining units in the development?

The remaining units are expected to start at $10 million.

Who is the architect behind the new condominium project?

The project is designed by the renowned architect Rem Koolhaas and his firm OMA.

Has the site previously hosted any other buildings?

Yes, the site formerly housed a 15-story condominium building named La Costa, which was acquired by Mast Capital in 2022 after it was deemed unsafe.

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