Northwind Group announced the origination of a $98 million senior secured loan to acquire 1250 West Avenue, an existing condominium building in South Beach, Miami.
Northwind Group originated the loan to support the redevelopment of a prime bayfront site in Miami Beach. Terra is leading the project in partnership with JDS Development Group, Rafi Gibly, and Gianluca Vacchi. The group plans to transform the property into a luxury condominium tower on Biscayne Bay.
The existing asset, a 238-unit condominium built in 1964, had become increasingly challenged by rising common charges driven by insurance costs and deferred maintenance. The sponsorship successfully acquired more than 95% of the units, providing the ability to dissolve the condominium association and proceed with demolition. During this process, the team successfully secured entitlements permitting development up to 330 feet in height, with an anticipated 100-unit luxury residential program.
Premier development sites in South Beach are scarce, with most remaining parcels encumbered by aging condominium structures. This scarcity has driven leading developers to pursue complex condo acquisitions with the goal of unlocking redevelopment opportunities in highly desirable locations.
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