MIAMI-With $153 million in construction funding, New York City-based Extell Development Co. will break ground on July 1 for a two-tower, mixed-use development now named after is prestigious address, 1060 Brickell. When Extell announced the project in October 2004, the company was called Intell Management and Investment Co., and the project was named Avenue. While the plan remains the same, the costs and condo prices have moved up.
Thomas Moore, VP and senior loan originator in the Atlanta office of Santa Monica, CA-based Fremont Investment & Loan, arranged the funding, its sixth transaction with Extell. PB Capital, based in New York City, provided half of the total loan amount via a co-lending agreement, Moore says without disclosing other details of the funding. Fremont also supplied Extell with a $12-million loan to acquire the site in December 2003. According to public records, the price was nearly $15.4 million. Moshe Spitzer, an Extell VP, tells GlobeSt.com the project cost is $220 million.
The property calls for two towers containing a total of 570 residential condos, 25,000 sf of retail and an 11-story parking garage. Spitzer says more than 520 of the residential units are pre-sold, "with many more contracts in the pipeline. But, obtaining the financing is a far more important milestone than the number of units sold. Getting financing in Miami, especially an amount for a project of this size, is very difficult. Lenders are wary, because so many condo projects have been announced, and have already pre-sold units. A lender really needs to understand the developer's ability to deliver and keep costs under control."
Residential units in 1060 Brickell range from 750 sf for studios to 2,500-sf duplex penthouses. Prices, Spitzer says, "range from $360,000 to over $1.5 million." When the project was announced last October, GlobeSt.com reported the price range between "the low $200,000s to more than $1 million."
Extell expects to deliver in late fall 2007. The company has significant development underway in New York, and this is its first project in Miami. Spitzer says it might consider additional development here, "if an attractive site became available and we could control costs."
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