Miami Condo Market and Lifestyle Updates
Lenders Once Again Considering Construction Loans in South Florida

Lenders Once Again Considering Construction Loans in South Florida

by Sep Niakan | October 18, 2013

Although banks may once have been hesitant regarding construction lending, that is now changing. Case in point: In what amounts to one of the largest loans for a single construction project in the region, the Porsche Design condo project recently closed on a $214 million loan. The loan was originated by Wells Fargo for Dezer Development and will culminate in the construction of the Porsche Design Tower in Sunny Isles Beach.

Porsche Design condo tower will span 60 floors and include 132 ultra-luxury residences. The closing of the loan for this unique project indicates positive news overall for the recovery of the real estate market in the local area as well as real estate financing. Many commercial banks took leave of construction lending following the crash of the real estate market in the past few years. As housing as well as other segments of the market have begun to experience recovery, an increasing number of lenders have expressed a renewed, if somewhat conservative, interest in construction lending in South Florida.

Dezer Development, who has already completed six successful projects in the local area alone, is not the only example of a successful condo development lending project in the area. The Trump Group, recently obtained a construction loan for $160 million to complete an ultra-luxury condo project in Sunny Isles Beach, as well. Prior to the Dezer Development loan for the Porsche Design condo project, Mansions at Acqualina was one of the largest such loans South Florida had seen for some time.

As an increasing number of lenders are looking for developer applicants with proven track records and an increased equity, many condo projects are turning to an alternative financing model. Sometimes referred to as the Latin American model, this method requires larger deposits from buyers. This often involves at least 50 percent of the purchase price of the unit prior to closing. In the case of the Porsche Design project, more than $535 million in sales have already been secured for the project. Representing more than 66 percent of the proposed units, those sales exceeded the required benchmark required by Wells Fargo to secure the condo development loan. 


                                                                 The Porsche Design Tower 

Recent posts


7 Must-Do Pre-Halloween Events

by Sep Niakan | October 13, 2016

I know Halloween’s around the corner and it’s a given it will be the highlight of everyone’s social calendar. Miami’s Fall calendar is full of exciting events and here’s the low-down on how you can enjoy the run up to...

Real Estate News

With Approved 960-Foot Brickell Market Place, a Headache for Brickell Heights?

by Sep Niakan | September 27, 2016

Claro Development’s latest at 10 SW 8th Street is going to be a tall order, literally! Fresh-approved by the FAA, the Brickell Market Place is set to rise up to 954 feet above ground, or 960 feet above sea level. Approved after a seven-month...

Real Estate News

An Edgewater Miami Hotel Joins the Micro-unit “Tiny Homes” Trend

by Sep Niakan | September 26, 2016

Come year-end, Miami’s Edgewater neighborhood will be home to one of Best Western International’s first boutique hotel brand offerings - Vib. Best Western’s chosen only 20 key urban markets (including Miami) across North America to...

Real Estate News

Skyrise Miami: Future Tourist Destination and Hard Pill to Swallow for Miami Locals

by Sep Niakan | September 23, 2016

The Berkowitz Development Group, describes SkyRise as their “abstract version of the Statue of Liberty”. Approved in 2014, this R-shaped structure is being built in tandem with the revitalization of Bayside Marketplace. The tower will be...