MIAMI, FL - NRI affiliate NRI Real Token, Inc., has recapitalized THesis Miami, a newly-constructed 770,000-sf mixed-used development across from the University of Miami in Coral Gables, Fla., with just under $33 million of equity raised on CrowdStreet, the largest online real estate investing platform.
The Residences at THesis opened in July 2020, followed by THesis Hotel in August 2020 and the My Salon Suites retail space in September 2020. The multifamily component is 99.5% leased, while the hotel, retail and parking garage components are ramping to stabilization. The project also includes three high-end food and beverage outlets, Mamey, Mamey on 3rd, and Orno, all run by nationally recognized chef Niven Patel.
The project is located off US 1, one of the most heavily trafficked South Florida thoroughfares. The site provides direct access to Jaycee Park to the south, connecting the property to the neighboring residential community, the University Metrorail bridge and station to the north, creating a pedestrian link to the University of Miami and providing a short commute to Brickell’s Financial District and downtown Miami’s new Brightline station. The project’s proximity to the Underline, a 10-mile linear park beneath the Metrorail that has already become known as a community gathering place and activity corridor, provides yet another means of connectivity for the guests and residents.
Miami is the #1 hotel market and the #16 overall market on CrowdStreet’s “Best Places to Invest in 2021” national ranking of top real estate investment markets.
Approximately 700 individual investors on CrowdStreet provided equity for the project. To provide optionality, investors will be able to maintain their interests within the operating partnership until the investment is realized, or convert all or a portion of their interests into digitized REIT shares that may be further tokenized and later traded on select Alternate Trading Systems (ATS).
Approximately $95 million of total equity, including $62 million of General Partner equity and $32.7 million from CrowdStreet investors – representing total new equity raised of approximately $78 million – was used to fully redeem the equity interest of former LP partner 54 Madison. As part of the closing, NRI restructured an approximately $150 million mortgage loan from Starwood Property Trust.
Brent Reynolds, CEO and Managing Partner of Nolan Reynolds International, commented: “We opened the THesis project during the height of the Covid pandemic, one of the most challenging times within the development and hospitality industry. Even given those challenges and a true testament to the project, we were able to lease the multifamily product to a stabilized occupancy within eight months from opening at some of the highest rents in the market. In addition, our food and beverage components have been and continue to significantly outperform our underwriting assumptions.”
Benjamin McFarland, Senior Managing Director of CrowdStreet, added: “Miami is ranked as CrowdStreet’s #1 hotel investment market for 2021, and a top 20 market overall, based on our evolving view of where there is attractive investment opportunity. NRI’s THesis checks a number of boxes, starting with the fact that it’s a high-quality property brought to life by a tenured sponsor with a well-established track record.”
About Nolan Reynolds International: Nolan Reynolds International, LLC, together with its affiliates and subsidiaries, are engaged in development, investment and management of a diverse portfolio of real estate. The Nolan Reynolds group of companies have delivered award-winning projects in the United States and Latin America by marrying quality design and innovative programming to produce projects that complement and embrace the culture of the communities in which they serve. The company’s history dates to 1890 and includes the completion of more than $6.0 billion of projects, including the construction of many large-scale government infrastructure and private mixed-use developments. For more information, visit www.nrinternational.com
About CrowdStreet: CrowdStreet is the largest online real estate investing platform, providing individual investors direct access to the most diverse range of institutional-quality investment opportunities. To date, thousands of investors have invested over $2 billion in more than 500 projects, receiving more than $220 million in distributions. For more information, visit www.crowdstreet.com