MIAMI—Developer Property Markets Group closed a $153.9 million construction loan for the first phase of its mixed-use Fort Lauderdale Riverfront project. Earlier this year, the development firm purchased the 2.38-acre parcel of land for $29 million from Las Olas Riverfront LP, an affiliate of Merrimac Ventures led by president Dev Motwani, who will retain approximately 18,000 square feet of retail developed in phase one along the river.

Slated for completion in 2020, the project will include two multifamily towers with 1,200 units. Phase one will offer a 36-floor residential tower with approximately 600 micro-units and multi-bedroom suites, plus more than 100,000 square feet of communal amenity spaces. (Meanwhile, a mega mixed-use transit-oriented project is rising nearby.)

Luis Flores, Lori Hartglass, Rebecca Sarelson and Anthony Kang of Arnstein & Lehr LLP closed the transaction on behalf of Property Markets Group. The Merchant Banking Division of Goldman, Sachs & Co., through its credit fund Broad Street Real Estate Credit Partners III, provided financing for phase one of the project.

“Securing financing for a development to be built in phases based upon the property's layout could have been challenging,” Flores, who chairs Arnstein & Lehr's Florida Commercial Real Estate Practice Group, tells GlobeSt.com. “But we were able to overcome that by creating a land trust with beneficiaries to all serve as borrower.”

A partnership of Walker & Dunlop's Miami team and New York-based SRF Ventures arranged the financing. Walker's team includes managing directors Eric McGlynn, Kevin O'Grady and Daniel Sheehan. Steven Fischler is the president of SRF.

“This structure allows a developer to fine-tune the parameters of each component of a mixed-use project at a later time without affecting its ability to secure a construction loan today or impact its ability to subsequently convey such components without triggering transfer taxes,” Flores says. “No doubt this loan speaks highly of Kevin Maloney and Ryan Shear's vision for the Fort Lauderdale market.”

The new division addresses the rising costs and social isolation of urban living by creating community-driven buildings that deliver the best living experience at an attainable value. PMGx designs projects around the concepts of shared community spaces that are constantly activated by social events, technology-enabled convenience managed via a proprietary mobile app, and the flexibility to rent an entire apartment or a private bedroom and bathroom in a multi-bedroom suite. (Find out why some developers are heading north.)

PMGx is planning to develop more than 3,500 units across the United States over the next five years. Projects in the pipeline include: the 464-unit “Vice” in Downtown Miami, opening in Fall 2018; the 100-unit “U” in University Village Chicago, opening Spring 2018; the 220-unit “Sunday” in the Union Station North neighborhood of Downtown Denver, opening in 2020; “Parkworks,” a large master-planned community in the Pilsen neighborhood of Chicago, opening in 2020; and the 120-unit “L” in Logan Square Chicago, which pioneered the PMGx rent-by-bedroom program and is currently fully leased. Several additional projects are being planned in other major markets.

Common amenities include coworking office spaces that eliminate the need for an office, oversized gyms and fitness studios with frequent group classes, communal kitchens to host potlucks and demonstrations, smart package lockers, dog runs, and bike storage facilities. Many units come pre-furnished for a turnkey move in. A mobile app enables keyless entry, manages guest lists and access, adjusts smart thermostats, notifies about packages, and facilitates social events. PMGx plans to grow a unified portfolio in target cities across the nation.

Ryan Shear, Evan Schapiro and Matt Ellish led the PMGx team on the closing. In addition, Courtney and Jason Crush of Crush Law, P.A. assisted with land use and zoning matters.

Instant Insights /

Another Mega Project Rising in Fort Lauderdale

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