JDS Development and its partners have closed on construction financing for a luxury condo project in South Beach, months after their previous lender filed a foreclosure lawsuit.
New York-based JDS, led by Michael Stern, New Valley and others just secured $62.5 million of financing, which breaks down to a $20 million senior loan from Bank of the Ozarks and $42.5 million of mezzanine financing from VanBarton Group, the developer announced on Monday. They plan to go vertical on Monad Terrace, a 59-unit building condo building designed by Pritzker Prize winning architect Jean Nouvel, in February, Stern said.
In June, Delaware-based lender EO Monad Terrace sued Monad Terrace Property Owner LLC for failing to pay the $45.8 million mortgage principal on the property at 1300 Monad Terrace. Earlier this month, the developer requested a two-week extension to respond to the complaint. Stern said JDS and its partners closed on the financing on Friday. The suit was also dismissed Friday, he said. Records do not show the judge’s order.
The developers launched sales of the boutique condo building with Douglas Elliman in February. Units range from two to five bedrooms and from about 2,000 to nearly 14,000 square feet. Prices start at $1.7 million and go up to $12 million. Elliman declined to provide a sales figure, but the brokerage’s Florida CEO Jay Parker said buyers so far hail from the Northeast, Europe and from South Florida.
JDS, New Valley, Ackerman Development, Mink Development and others spent about $51 million assembling the development site between 2015 and 2016. Stern said the developers have put in more than $40 million into the project and will invest more if needed.
The foreclosure suit revealed the ownership structure of Monad Terrace Property Owner at the time of the loan closing. Vector Group’s New Valley owns 30.38 percent of the company. The majority 69.62 percent is owned by entities controlled by Stern, Daniel Minkowitz of Mink, and Ackerman; and Zurab Zaskalko, Paata Gamgoneishvili and Evgeny Konovalov.
It’s the first Miami project for Nouvel, who’s working with Kobi Karp as the architect of record. Amenities will include a sun deck with a pool and hot tub, a cafe and juice bar, wellness center, and bicycle and water sports storage room. Penthouse units include rooftop decks with private pools.