Melo Group Lands $67M Loan for Market-Rate M-F High-Rise in Miami
- Oct 09, 2014
Melo Group has secured $67 million in financing for construction of Melody, a 497-unit market-rate apartment tower that will sprout up in downtown Miami. TotalBank and Sabadell provided the syndicated loan for the 36-story project.
Melo Group’s call for financing for Melody was like music to the ears of the lending community. Location had more than a little to do with the attraction. The property, which will carry the address of 245 N.E. 14th St., sits across from the Adrienne Arsht Center for the Performing Arts, near a metro station and, perhaps most importantly, its location in downtown Miami places it smack dab in the middle of one of South Florida’s largest employment hubs.
“Melody is one of the few market-rate rental buildings that will be built in greater downtown Miami in this cycle, as skyrocketing land values are making it economically unfeasible for other apartment developers to come in,” a Melo Group spokesperson told Commercial Property Executive. “Melo Group acquired the land when values were depressed several years ago. Projects located in areas with high barriers to entry, like Melody, tend to appreciate faster and that is attractive to lenders.”
Lenders were also drawn in by the sponsorship, specifically, the spokesperson added, Melo Group’s “financial strength” and “great track record.” Over the last 10 years, Melo Group has completed eight market-rate rental buildings in Miami’s urban core, all of which are fully occupied.
Construction of Melody is on schedule to reach completion in early 2016.