13th Floor Investments secured an $83 million construction loan for a proposed 398-unit apartment complex in Hallandale Beach.
The deal comes at a time when South Florida is experiencing a sustained flow of financing despite high interest rates and multifamily construction is reaching a record level.
13th Floor, led by managing partner Arnaud Karsenti, is developing the five-story Parks at Hallandale project with some rental apartments for employees and 6,500 square feet of ground-floor retail space at 2002 Pembroke Road, according to the company’s press release. The complex will consist of seven residential buildings and a separate retail building, according to a notice of start of construction filed this month.
The complex will be built next to the Big Easy Casino, owned by Jeffrey Soffer’s Fontainebleau Development.
The loan was provided by CIBC Bank USA and Houston-based Marble Capital contributed an undisclosed amount of preferred stock, the press release said.
Berkadia’s Scott Wadler and Alec Fox represented 13th Floor in the preferred stock deal. The mortgage lending and preferred stock deal together account for about 75 percent of the loan-to-cost ratio, Wadler said.
Parks at Hallandale will consist of studios, one- to three-bedroom apartments ranging from 55 to 130 square feet. The complex will also have a playground, dog park, and tennis and pickleball courts, according to the press release.
13th Floor bought the 15.5-acre site in 2021 for $18.5 million, records show. The city of Hallandale Beach approved Parks at Hallandale in January.
Completion is expected in 2026, the statement said.
Over the past four years, South Florida has become the preferred choice for out-of-state movers, creating unprecedented demand for housing and sparking record rent increases. Developers have taken advantage of the bonanza with plans for new projects and are expected to complete 23,863 units by year’s end, the highest number since 2002, according to a report from Berkadia.
The extensive construction project and recent completions have led to subdued demand and lower rents in some submarkets.
At the same time, financing deals for new residential projects continue to be signed. Real estate companies secured $72.5 million last month to build two eight-story buildings with a total of 321 residential units at 520 North Rosemary Avenue in downtown West Palm Beach. Also last month, Newrock Partners and Brickbox Development secured a $60 million loan to build a seven-story, 165-unit residential project at 3411 North Federal Highway in Oakland Park.
