Terra-Led Partnership Secures $507M Construction Loan for Miami Beach Condo Project

A partnership led by Terra has secured a $507 million construction loan for a new luxury condominium development located at 1250 West Avenue in Miami Beach. The financing, provided by Tyko Capital, an entity backed by Elliot Management, is notable because it was obtained before the project's pre-sales have even commenced, with sales expected to launch next year. This deviates from the typical lending practice requiring a certain sales threshold before construction funding is released.

The project involves a 28-story, 106-unit tower situated on South Beach's western waterfront, overlooking Biscayne Bay. This development will replace a 15-story condo building constructed in 1964, which Terra acquired for $120 million last year. To gain approval for the 330-foot-tall structure, the developers also purchased and demolished the adjacent Bikini Hostel, planning to convert that site into a public park. The luxury building will feature rooftop pools, an underground parking garage, a padel court, and ground-floor retail.

Tyko Capital's Adi Chugh highlighted Miami Beach as one of the country's most supply-constrained luxury markets, making bayfront development opportunities at this scale rare. The development partners include GV Development, LORE Development Group, and RG Development Group. This early financing underscores a robust belief in the continued demand for high-end residential properties in prime South Florida locations, potentially setting a precedent for future luxury developments.