April 1, 2014
Capital Lofts, a 16-story loft-style condo project in Downtown Miami, has more than historic status on its side—it also has a $6 million influx of money.
The landmark property at 117 N.E. 1st Avenue just secured a recapitalization loan.
CBRE arranged the loan for Coast Capital Partners. Coast plans buy out an investment partner and complete the sell off of the 46 remaining units in the project. Doral Bank of New York provided the two-year, floating rate, interest-only loan, at a 65% loan-to-value ratio.
“The Capital Lofts transaction represents a unique re-capitalization of a historic building in downtown Miami,” says CBRE first vice president Christopher Apone. “Coast Capital Partners was able to capitalize on the unique non-recourse structure that Doral Bank offers for condo inventory loans in order to carry out a partnership buyout and execute their business plan of selling off the remaining 46 units of the property to condo buyers.”
Built in 1926 as the Security Building, the 64,388-square-foot property is listed in the National Register of Historic Places, and was formerly operated as an office and bank building. Before Coast got involved, a developer purchased the building and invested significant capital converting it to New York-loft-style condo units.
As project neared completion in 2009, the market downturn resulted in a distressed situation in which Coast and its investment partners purchased and foreclosed on the note, taking ownership of 46 of the 59 units in the building. The units are currently leased as multifamily rentals but will be sold as condos over the next two years.
The historic building features original terrazzo floors, exposed original brick, large frame windows, and modern features such as stainless steel appliances, granite counters, and a washer/dryer in all units. Apone worked with CBRE vice chairman Charles Foschini and Christian Lee, with CBRE’s Capital Markets Institutional Group, to arrange the loan.