At a glance
- Fortune International Group and Kar Properties announced the financing Wednesday.
- For allocators weighing South Florida construction exposure, the loan sets a fresh benchmark: $817 million for a project with more than $500 million in presales, about 60% of the debt, the sponsors said.
- Fortune International also borrowed $463 million earlier this week to finish one tower at the St. Regis Residences in Sunny Isles Beach, giving the sponsor $1.28 billion of condo construction financing in a week.
Tyko Capital's $817 million construction loan for a two-tower, Faena-branded condominium project on the Miami River is the largest ever made in Florida, Commercial Observer reported.
Fortune International Group and Kar Properties announced the financing Wednesday. Each of the 68-story towers at 24 Southwest Fourth Street, across from Brickell City Centre, will hold 217 units on a 1.8-acre site designed by Rafael Viñoly Architects. Terms were not disclosed.
For allocators weighing South Florida construction exposure, the loan sets a fresh benchmark: $817 million for a project with more than $500 million in presales, about 60% of the debt, the sponsors said. The previous Florida record was a $772 million loan Stephen Ross secured for two Class A office buildings in West Palm Beach.
Fortune International also borrowed $463 million earlier this week to finish one tower at the St. Regis Residences in Sunny Isles Beach, giving the sponsor $1.28 billion of condo construction financing in a week. The Faena project's presales include a $30 million penthouse purchase, the sponsors said.
The downtown Miami land was purchased for $58.8 million in 2022 by Defortuna with Kar Properties, which had owned the site since 2013, according to property records. That works out to roughly $33 million an acre. Kar launched sales for a luxury condo project in 2015, but construction never started. Bank OZK supplied a $38 million loan in 2023 for marketing costs and site work.
Adi Chugh's Tyko Capital, backed by Elliott Management, has become one of South Florida's most prominent lenders, Commercial Observer reported, with large loans for the Bentley-branded condo in Sunny Isles Beach and the convention center hotel in Miami Beach. Walker & Dunlop arranged the debt. Walker & Dunlop also arranged a $216 million bridge refinancing for 568 Broadway with ACORE Capital this month, as Private Wealth Daily previously reported.
The Faena Residences is the first condo development for the hotel brand founded by Alan Faena and Len Blavatnik in 2000. Construction is expected to be completed in 2030.
Thirteen years from vacant lot to an $817 million loan
Milestones for the Faena Residences site at 24 Southwest Fourth Street, Miami
- 2013Kar Properties takes ownership of the site (Completed)
- 2015Kar launches condo sales; construction never starts (Completed)
- 2022Defortuna buys the site for $58.8 million with Kar (Completed)
- 2023Bank OZK lends $38 million for site work (Completed)
- Oct 28, 2026Tyko Capital lends $817 million (Current stage)
- 2030Two towers expected to be completed (Upcoming)
Show as table
| Date | Event | Detail |
|---|---|---|
| 2013 | Kar Properties takes ownership of the site | |
| 2015 | Kar launches condo sales; construction never starts | |
| 2022 | Defortuna buys the site for $58.8 million with Kar | |
| 2023 | Bank OZK lends $38 million for site work | |
| Oct 28, 2026 | Tyko Capital lends $817 million | |
| 2030 | Two towers expected to be completed |
| Financing | Amount | Status |
|---|---|---|
| Tyko Capital construction loan, Faena Residences | $817 million | Announced Oct. 28, 2026 |
| Prior Florida construction loan record, West Palm Beach offices | $772 million | Prior record, per Commercial Observer |
| St. Regis Residences Sunny Isles Beach tower | $463 million | Announced earlier this week |
| Bank OZK marketing and site-work loan, Faena site | $38 million | 2023 |
Reported by the Real estate debt desk from Commercial Observer and Private Wealth Daily archive. Published . Corrections