Walker & Dunlop Arranges $45M in Land Loans for Waldorf Astoria in Miami and Boca Housing Project
The two land loans in Miami and Boca Raton totaled $45.2 million. The Bethesda, MD-based Walker & Dunlop arranged a $33-million loan in connection with the development of the new Waldorf Astoria Hotel & Residences Miami at 300 Biscayne Blvd.
MIAMI—Commercial real estate finance firm Walker & Dunlop reports it has arranged two large land loans in South Florida. the largest of which will help seed the development of the Waldorf Astoria Hotel & Residences Miami.
The two land loans in Miami and Boca Raton totaled $45.2 million. The Bethesda, MD-based Walker & Dunlop arranged a $33-million loan in connection with the development of the new Waldorf Astoria Hotel & Residences Miami at 300 Biscayne Blvd. The project is being developed by New York-based developer Property Markets Group (PMG), along with Toronto-based private equity and asset management firm Greybrook Realty Partners and S2 Development of Miami.
Once complete, the luxury hotel and condo tower will comprise 98 stories with a 140-key hotel and approximately 400 condo units. BridgeInvest was the lender in the deal. Walker & Dunlop reports that the loan was structured to allow for the finalization of approvals for the project and the launch of condo sales. With its flexible terms, the interest-only, non-recourse financing provides the developer the option to exit with limited pre-payment penalties.
Hilton announced the development of the Waldorf Astoria Hotel & Residences Miami in September 2018. Upon completion, the new high-rise property will mark the entrance into the Miami market for the luxury brand.
PMG, which has condo developments in New York City, Chicago and Miami, lists among some of its more notable developments as 111 West 57th St., Walker Tower and 111 Leroy in New York City, as well as Echo Aventura, Muse Residences Sunny Isles, Echo Brickell and Mei in South Florida.
The second of the two re-financings totaled $12.2 million for 130 acres in central Boca Raton that was formerly the Mizner Trail Golf Club, a public golf course. The property is owned by an affiliate of locally-based Compson Associates, which has entitled the land for a 255-unit residential development consisting of a mix of single-family and townhomes.
As the property’s existing loan was nearing the end of its term, the Walker & Dunlop secured new financing for the Compson affiliate from New Gables Capital at a lower interest rate. The loan is full-term interest-only and provided the owner with an additional 12 months to complete predevelopment activities, Walker & Dunlop states.
Miami-based Eric McGlynn and Kevin O’Grady, both managing directors in Walker & Dunlop’s capital markets group, arranged the two non-recourse loans, effectively lowering interest rates on each property’s existing land loan.
“Both loans were similar in that they were refinancing existing land loans that achieved a better cost of capital for the borrower,” McGlynn says. “Also, both projects had a very significant amount of cash equity investment which gave the lenders comfort that the developers would see these projects through and ultimately repay the loans.”