MIAMI—Despite memories of the bust, the current real estate cycle has seen some of the largest condo construction loans ever inked in South Florida. Just a year ago, lenders were hesitant to lend large sums to condo developers. Nevertheless, it's not always easy to secure a condo loan.

GlobeSt.com caught up with Luis Flores, an attorney in Arnstein & Lehr's Miami office and is the chair of the firm's Florida Commercial Practice Group, to get his thoughts on how the lending environment is changing in part one of this exclusive interview. Flores focuses his practice in the areas of real estate, banking and transactional law.

GlobeSt.com: What are some of the construction loans you have been involved with in recent times?

Flores: In March 2015, I represented J. Milton & Associates in closing a $136.5 million loan for the construction of the Parque Towers project in Sunny Isles. The lender is Wells Fargo. In December 2014, I represented PMG-S2 Sunny Isles in obtaining a $167 million construction loan from Guggenheim Commercial Real Estate Finance to build the Muse project.

In November 2014, I represented PMG Downtown Developers in acquiring 300 Biscayne Boulevard for a purchase price of $80 million, which included a $48 million acquisition loan from Fortress Credit Co. In October 2014, I represented PMG Brickell in obtaining a $123 million construction loan from Canyon Capital Real Estate Advisors to build the Echo Brickell project.

GlobeSt.com: How different is today's lending environment for condo construction financing compared to 18 months ago? 

Flores: Construction lenders have had an opportunity to familiarize themselves with the new business model condo developments. By that, I mean the lenders understand and have confidence in the new capital structure which is made up of: a developer's equity; the purchaser deposits—typically up to 50% of the purchase price; and the construction loan. 

When the great recession ended several lenders were not entirely comfortable with the new purchaser deposit structure. As developments began and purchasers posted their deposits at the agreed upon benchmarks. For example, upon signing, then upon groundbreaking and then upon building top-off or floor completion, the lenders confidence grew.