13th Floor Investments landed an $83 million construction loan for a planned 398-unit apartment complex in Hallandale Beach.
The deal comes as South Florida is experiencing a continued flow of financing, despite elevated interest rates, and a record multifamily construction pipeline.
13th Floor, led by managing partner Arnaud Karsenti, is developing the five-story Parks at Hallandale project with some workforce rental units and 6,500 square feet of ground-floor retail at 2002 Pembroke Road, according to the company’s news release. The complex will consist of seven apartment buildings and a separate retail building, according to a notice of construction commencement filed this month.
The complex will be built next to The Big Easy Casino, which is owned by Jeffrey Soffer’s Fontainebleau Development.
CIBC Bank USA provided the loan, and Houston-based Marble Capital provided an undisclosed amount of preferred equity, the release says.
Scott Wadler and Alec Fox of Berkadia represented 13th Floor in the preferred equity deal. The construction financing and preferred equity together represent about 75 percent of the loan-to-cost ratio, Wadler said.
Parks at Hallandale will consist of studios, as well as one- to three-bedroom apartments, ranging from 600 square feet to 1,400 square feet. The complex also will have a playground, dog park, and tennis and pickleball courts, according to the release.
13th Floor bought the 15.5-acre development site in 2021 for $18.5 million, records show. The city of Hallandale Beach approved Parks at Hallandale in January.
It is expected to be completed in 2026, the release says.
Over the past four years, South Florida became a prime choice among out-of-state transplants, creating unprecedented apartment demand and prompting record rent hikes. Developers seized on the bonanza with plans for new projects and are expected to complete 23,863 units by the end of the year, the highest number since 2002, according to a Berkadia report.
The hefty pipeline, as well as recent new completions, have tempered demand and lowered rents in some submarkets.
At the same time, construction financing deals for new apartment projects still are closing. Estate Companies landed $72.5 million last month to build a pair of eight-story buildings with 321 units, combined, at 520 North Rosemary Avenue in downtown West Palm Beach. Also last month, Newrock Partners and Brickbox Development scored a $60 million loan to build a seven-story, 165-unit apartment project at 3411 North Federal Highway in Oakland Park.