Tyko Capital Sets New Record For Florida’s Largest Construction Loan
The bar for the largest construction loan in Florida was raised for the third year in a row.
Fortune International Group and Kar Properties secured an $817M loan from New York-based Tyko Capital to build the two-tower, 434-unit Faena Residences Miami, a planned luxury condo complex on a 14-acre lot along the Miami River, according to a press release.
Bisnow/Chloe GallivanOutside the Faena Residences Miami sales center in June
“This financing is a major milestone not only for Faena Residences Miami, but for Miami’s luxury residential market,” Fortune CEO and President Edgardo Defortuna said in the Wednesday release. “It demonstrates the depth of confidence in the project and the continued global appetite for best-in-class real estate in Miami.”
The deal marks the largest construction loan ever recorded in Florida, surpassing the $772M construction loan Related Ross landed last year for two upcoming office towers in West Palm Beach and the $668M construction loan Property Markets Group secured in 2024 to build the Waldorf Astoria Hotel & Residences Miami.
A Walker & Dunlop Capital Markets team of Michael Stepniewski, Keith Kurland, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer and Sean Bastian arranged the financing.
The developers plan two 68-story towers connected on the 61st, 62nd and 64th floors by a three-story, 45K SF bridge that will serve as the Faena Rose cultural center, with space for private events, dining, wellness, fitness and entertainment.
Faena Residences Miami is set to rise at 24 SW Fourth St. on 300 feet of Miami River frontage across from Brickell City Centre by early 2030. Unit sales have reached more than $500M to date.
The layout has changed since the joint venture tapped the hospitality, real estate and culture brand Faena in 2024, when the JV planned two 60-story towers, a two-story sky bridge and 440 units.
Kar Properties first proposed the project in 2014 as One River Point. Fortune joined the project as a partner in 2022, and a year later, the pair landed a $34M loan from Bank OZK to start the first phase of construction.
Bisnow/Chloe GallivanInside the Faena Residences Miami sales center in June
The loan is among the largest for Tyko Capital, which has provided multiple loans of more than half a billion dollars in recent years, including a $565M long-term loan for the 57-story 830 Brickell office tower in 2024 and a $570M construction loan for a planned condo project in Miami Beach earlier this month.
“We were proud to provide a tailored financing solution for Faena Residences Miami, a landmark project from an exceptional sponsorship group,” Tyko Capital CEO and founder Adi Chugh said in the release.
“This $817 million financing reflects our conviction in the strength of the Miami condominium market for special and unique projects and in Fortune International Group and KARProperties’ ability to deliver at the highest level.”
The private equity and private credit investment manager has become one of the most active lenders in South Florida since it was founded three years ago by Chugh, a debt broker, and billionaire hedge funder Paul Singer‘s Elliott Investment Management. Tyko broke $5B worth of loans within the first 18 months of its founding, Chugh told The Real Deal in 2024.
Chugh’s idea to start his own lending platform was born following the pandemic, when lenders became less active in the market.
“This is the time that the top sponsors are going to come into the market because there’s going to be some dislocation or distress, but their go-to lenders are cleaning their own house,” Chugh told TRD at the time.
“So this is white space for us.”
Source: www.bisnow.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.