The Biscayne Bay Apartments
Construction financing for middle market luxury apartment community
The Challenge
What the sponsor faced.
Sponsor needed 70% LTC construction financing for a 342-unit waterfront development in Miami with a compressed 24-month delivery schedule. Rising insurance costs in South Florida and a softer rent-growth outlook made regional banks reluctant to stretch beyond 60% LTC without recourse.
The Structure
How we structured it.
A senior construction loan from a life company (62% LTC, non-recourse) paired with a mezzanine tranche from a debt fund to reach 70% LTC. Interest reserve sized through stabilization plus six months. Completion guaranty on the GC, not the sponsor.
The Outcome
What the sponsor got.
Closed in 47 days from term sheet execution. Sponsor retained ~$12M of equity compared to a senior-only execution and avoided recourse entirely. Project broke ground on schedule.
Deal Mechanics
Structural highlights.
70% LTC non-recourse construction capital
Dual-tranche senior + mezzanine execution
Completion guaranty placed at GC level, not sponsor
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