Jon Chassen and Phillip S. Sosnow of Bilzin Sumberg.
J. Albert Diaz
One Thousand Museum is well underway in downtown Miami, but it was missing one key component to ensure the $450 million project’s completion — permanent construction financing.
The high-end condominium tower, which has been deemed an icon even before its delivery, is rising simultaneously with several other luxury condo and apartment buildings across South Florida. Its 83 residences are competing with a big inventory of newly built condos and existing units up for resale, as well as thousands under construction.
The tower’s developers were competing against other builders hoping to land a construction loan, a challenging feat as most traditional lenders have pulled back in response to a slower luxury housing market.
Bilzin Sumberg attorneys Jon Chassen and Phillip Sosnow stepped in to help the development team, a partnership between the Regalia Group and developers Louis Birdman and Gregg Covin, secure a construction loan to bring One Thousand Museum to the finish line. The attorneys have successfully represented the Regalia Group in the past.
The Bilzin team secured a $225 million loan from Fortress Investment Group, a global investment manager based in New York in a deal that closed Nov. 30.
“It’s interesting to see the continued growth and closing of construction loans as we close the year and enter into the new year, bearing in mind that six months ago no one really knew where the market was going,” said Sosnow, an associate who focuses on commercial real estate acquisitions and dispositions, development and leasing.
A transaction of this size shows lenders are still willing to finance the right product, he added.
One Thousand Museum marks the Western Hemisphere’s first residential tower designed by the late Zaha Hadid, a world-renowned architect who died in Miami this year.
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