PALM BEACH, FL - Forman Capital, a leading private direct real estate lender, funded an $8.36 million pre-development bridge loan secured by a Miami residential development site. The borrower, Dan Kodsi’s Royal Palm Companies (RPC), plans to develop a condo-hotel project on the properties.
The transaction closed on Aug. 16. Chief Investment Officer/Partner Scott Mehlman and Vice President Ty Regnier closed the financing on behalf of Forman Capital.
“Forman Capital is excited to collaborate with a sponsor we have a longstanding relationship with,” Mehlman said. “Given Miami’s continued population growth and year-round tourism, this branded condo-hotel development should be extremely successful. We are particularly bullish on the product type and Miami’s urban core overall.”
The site, which consists of two contiguous parcels totaling 0.49 acres just north of downtown Miami, is entitled for the development of up to 245 residential units. RPC is working with the City of Miami to increase the site’s density to accommodate up to 360 units.
RPC was founded by Kodsi in 1978 and has delivered over 9,500 units with $4.7 billion in real estate investments. The project site, located at 1317-1353 N. Miami Ave., is less than a mile from the I-95/I-395 interchange and near museums, parks, shopping, dining, Kaseya Center - the Miami Heat’s home arena, PortMiami and much more.
Two existing commercial buildings operated by two restaurant supply tenants are currently located on the overall project site.
“This is one of the more attractive undeveloped sites in the Greater Downtown Miami market,” Forman Capital Partner Ben Jacobson said. “The combination of the site’s appeal, the developer’s track record and pent-up demand for additional high-end condo-hotel inventory bodes well for the project’s sales activity.”
About Forman Capital: Palm Beach-based Forman Capital is a provider of private commercial real estate debt and equity financing for transactions ranging from $5 million to $100 million. The firm focuses on short-term construction financing, mezzanine debt, and preferred equity across various real estate asset classes and geographies. Company principals Brett Forman and Ben Jacobson have closed more than $2.8 billion in commercial real estate transactions since 2004. For more information, visit www.formancap.com