Related Group and its partners scored a $165 million refinancing for the Dorsey mixed-use project in Wynwood, even as the market nationwide for loans remains challenging, The Real Deal has learned.
New York-based MF1 Capital, a lender for multifamily properties in the U.S., provided the financing, sources said. It’s a 30-month, interest-only loan, according to Related.
Related, Alex Karakhanian’s Lndmrk Development, and Tricera Capital developed the 12-story project at 286 Northwest 29th Street in Miami, completing it last year. The 306-unit apartment building includes 36,000 square feet of retail, roughly 73,000 square feet of Class A office and nearly 500 parking spaces.
The refinancing pays off the $87.5 million loan that Bank OZK provided at the end of 2020. Berkadia’s Scott Wadler and Mike Basinski arranged the latest loan. Wadler said the financing was very competitive, but declined to comment further.
The rise in interest rates coupled with the recent failures of Signature Bank, Silvergate Bank and Silicon Valley Bank has slowed or halted a number of commercial loan closings nationwide, though the South Florida market has been somewhat insulated, according to experts.
Dorsey’s office space is fully leased, according to sources. Tenants include the New York-based hedge fund Schonfeld Strategic Advisors and the co-working operator Industrious.
Leasing is still underway for the apartments and retail. Designed by Arquitectonica, the building’s amenities include a gym with a yoga studio and spa, and a courtyard.
Units range from 450-square-foot studios to 1,600-square-foot three-bedroom apartments. Asking rents range from about $2,600 to $7,000 a month, according to Apartments.com, which also is advertising an incentive of a month of free rent. Dorsey is an example of a newly completed project where asking rents are considerably higher than originally anticipated. Just two years ago, rents were projected to range from $1,800 to $3,900 a month.
The Related joint venture secured approval for the project from the Miami Urban Development Review Board in late 2019. The developer paid $32 million for the Wynwood assemblage in 2019.
Dozens of projects are recently completed, under construction or planned in Wynwood. The neighborhood’s pipeline of apartments and condos exceeds 2,200 units, according to a TRD analysis published last summer.
In January, L&L Holding Company, Oak Row Equities, Shorenstein Properties and Marcelo Claure’s Claure Group closed a $215 million construction loan for Wynwood Plaza, a 1-million-square-foot office, apartment and retail project planned for 95 Northwest 29th Street in Wynwood. Little Rock, Arkansas-based Bank OZK, which has been very active in South Florida, also provided the loan for that development.
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Miami-based Related, led by Jorge Pérez and his sons, Jon Paul and Nick Pérez, entered the Wynwood market in late 2015 when it purchased a 50 percent stake in another mixed-use apartment project, now called Sentral Wynwood. Related and its partner, Block Capital Group, sold that property to Iconiq Capital in 2021, but Related has continued to invest in the neighborhood. It also co-developed Wynwood 25 and the adjacent Wynwood Annex,
In addition, Related plans NoMad Residences with David Edelstein’s Tricap, Karakhanian’s Lndmrk Development and Tricera Capital. It will be a 329-unit, nine-story building at 2700 Northwest Second Avenue.