Shahab Karmely Pays Off $128M Condo Inventory Loan

Developer Shahab Karmely paid off a $128 million condo inventory loan for 2000 Ocean, a boutique residential building in Hallandale Beach.

Karmely’s KAR Properties secured the financing in early 2022 for the unsold inventory at 2000 Ocean, a 38-story, 64-unit oceanfront tower that was completed in December 2021. New York-based Madison Realty Capital, led by Josh Zegen, provided the debt.

Developers typically use condo inventory loans to pay for carrying costs of unsold units and pay off existing debt, including construction loans. In the case of 2000 Ocean, the condo inventory loan from Madison paid off debt that Apollo Commercial Real Estate had issued in 2018.

Karmely said the Hallandale Beach building is about 70 percent sold, leaving about 19 units unsold. Property records show 38 units have sold, which comes out to nearly 60 percent of the building. Closings can take weeks to be recorded with the county.

Madison Realty Capital declined to comment.

Karmely said he has increased prices of units, citing inflation.

Edgardo Defortuna’s Fortune Development Sales has been leading sales and marketing for the project. The building was designed by Enrique Norten of TEN Arquitectos, Kobi Karp Architecture & Interior Design and with interiors by the Italian firm Minotti. Amenities include two pools with cabanas, a spa, cafe, library, theater and entertainment room, according to a release.

The developer paid about $34 million for the site at 2000 South Ocean Drive in 2014.

Suffolk Construction sued the developer last year, seeking at least $16 million in damages tied to allegedly unpaid work at 2000 Ocean. The lawsuit is ongoing.

Karmely and Defortuna have continued to partner on projects. Their two firms acquired a group of unsold condos at Brickell City Centre’s Rise and Reach towers in 2021. Swire Properties completed the condo towers in 2016.
Last year, they formed a joint venture to develop KAR’s development site along the Miami River, where Karmely’s firm planned to develop the luxury condominium called One River Point. They are expected to announce new details about the project soon, Karmely said.