PPG Development and its partners have secured $235 million in financing to build a 728-unit multifamily project in North Miami Beach. The funding includes a $205 million construction loan from BDT & MSD Partners and a $30 million preferred equity investment from Skylight Real Estate Partners and Meadow Partners, both based in New York.
The development, called Palm Aire, will be constructed on an 8-acre site at 1750 and 1775 Northeast 167th Street, formerly part of the Nova Southeastern University campus. According to Ari Pearl of PPG, along with Isaac Khabie of Ark Ventures and Matt Press of EquiShares, construction is expected to begin by the end of the month.
Aaron Kurlansky of Sheridan Capital represented both the borrowers and BDT & MSD. Aaron Jungreis and Alex Fuchs of Rosewood Realty Group represented the borrowers as well as Skylight and Meadow.
Miriam Ungar of PPG stated that Palm Aire will feature two three-story buildings, two six-story buildings, an eight-story building, and two garages. All units are planned to be market-rate rentals. “The project’s completion will be staggered to allow for newly finished apartments to lease-up before delivering additional units,” Ungar said. She also noted that one building will include a bodega.
PPG, Khabie, and Press acquired the site from Dezer Development for $31.1 million in 2022. Previously, Dezer purchased it from Nova Southeastern University for $20 million in 2018. At the time of sale to PPG and its partners, Nova Southeastern still occupied part of the property; their lease ended in summer 2023.
In 2023, city records show that developers received approval from North Miami Beach officials for the Palm Aire project.
Other developments are underway in North Miami Beach as well. Trinsic Residential Group and Macken Companies are working on Aura, an eight-story complex with 373 units plus ground-floor commercial space at 16955-17071 West Dixie Highway.
Across South Florida, developers have increasingly turned to private lenders over recent years due to stricter bank regulations following the Great Recession. Banks face minimum capital requirements and are less able to provide new loans amid higher interest rates. This has led alternative lenders like BDT & MSD Partners to fill the gap by offering more flexible terms than traditional banks (https://therealdeal.com/miami/2024/08/01/msd-bdt-partners-merger-complete/).
BDT & MSD Partners was formed in 2023 through a merger between merchant bank BDT & Company and MSD Partners (https://therealdeal.com/national/2023/10/02/bdt-msd-partners-complete-merger-of-merchant-banks/). Last month, they refinanced Steve Ross’ $242.5 million construction loan for One Flagler office tower in West Palm Beach with an additional $97.5 million in debt (https://therealdeal.com/miami/2024/07/18/msd-bdt-refinances-steve-ross-one-flagler-office-tower-with-242m-loan/).
Recent months have seen other large financing deals across South Florida’s multifamily sector as well: Grover Corlew obtained $92 million from Affinius Capital for a Fort Lauderdale apartment project (https://therealdeal.com/miami/2024/06/25/grover-corlew-scores-92m-for-fort-lauderdale-apartment-project/) while Post Road Group provided a $206 million construction loan for Baron Property Group’s Metro Parc North apartment building in Hialeah (https://therealdeal.com/miami/2024/03/14/baron-property-group-scores-206m-construction-loan-for-hialeah-multifamily-project/).
