MIAMI—Joint venture partners Related Group of Florida and SBE Hotel Group have secured a $157-million senior construction loan for its SLS Brickell Hotel & Residences project here with Los Angeles-based Canyon Capital Realty Advisors LLC.
The proceeds of Canyon Capital Realty's construction loan will be used to develop a 54-story luxury mixed-use tower, consisting of a 124-room SLS branded hotel and 453 SLS-branded residential condominiums located above the hotel. The hotel will include ground floor restaurant space featuring concepts by chefs Michael Schwartz and Jose Andres.
“Our hospitality expertise played a critical role in the borrower's decision to work with us,” says Ronald C. Muzii, Jr., the South Florida-based senior director with Canyon Capital Realty. “Related knew we were an experienced condominium construction lender, but SBE knew that Canyon had extensive nationwide hotel experience as well which would be crucial in getting this deal done.”
"Canyon is one of the few lenders that could handle a $150-million-plus loan without outside participants. When you combine that with their local expertise and proven ability to execute complicated transactions, they were the lender of choice for this transaction," says Manuel de Zárraga, executive managing director at HFF, who along with Max Comess, director and Scott Wadler, associate director, helped secure the loan on behalf of the Related/SBE partnership
"We were looking for a one-stop financing solution for SLS Brickell, and we appreciated Canyon's ability to move quickly to structure a loan which addressed the complications of the deal," says Matthew Allen, Related's executive vice president and COO.
The loan for the SLS Brickell Hotel & Residences marks Canyon Capital Realty's 13th investment in Florida in the last four years and the fourth recent debt transaction in the Brickell submarket. Canyon's current portfolio of loans in the Brickell submarket include a $123.6-million senior construction loan made in October 2014 for Echo Brickell, a 57-story luxury residential condominium development, and a $28-million construction loan made in November 2013 for BrickellHouse, a 46-story, 374-unit luxury condominium property. Canyon's loan on Brickellhouse is currently being paid down through the closing of the condominium units to buyers, company officials say.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.