Cash Out for Broken Condo

Assignment

A Miami based developer/family office engaged our firm to provide the capital required to assemble and entitle what will become a 2 acre mixed use residential and retail development in Wynwood and Fort Lauderdale. The developer possessed an attractive legacy residential condo over ground floor retail, owned by his family office. The project, however, faced many challenges. Foremost was the need for a creative cash-out refinancing at a low interest rate for a condo which he did not own each unit and which had over 100 separate folios / titles. This also resulted in a highly complicated insurance requirement, one of the main challenges of the deal.

Approach

FinanceMiami assisted in structuring the transaction, leveraging relationships with local lenders. The loan was creatively marketed as a multifamily with value-add upside by pushing rents with a light capital improvement program which would be implemented over time.

Results

We were able to assist the developer in his vision of assembling and entitling two new projects by obtaining a refinance of the existing note, plus cash-out of $12 million. The developer was able to use the proceeds to acquire a water front site in Fort Lauderdale, which will be developed into luxury units, and also a ½ acre site in Wynwood, slated for development Class A office.