A construction loan was closed by Developer Gil Dezer. It is going to be used for the Porsche Design Tower, located at the Sunny Isle Beach in Miami. One of the major loans approved by banks has been invested into projects related to selected particular projects.
The public should expect the luxury tower to feature 60 stories with 132 units in the entire building. In addition, the building will also have an elevator made out of glass which will be bringing the owner’s vehicles near the unit into a private garage.
According to Dezer, a developer in Miami, the building has a total of $550 million with regards to the sales that they were able to get. That means that two thirds of the total units in the building have already been sold.
“That already exceeds the amount that the company was able to get from the loan granted to them,” said the developer from Wells Fargo.
This can be a good sign for the construction business. Commercial banks have been hesitant in making investments in the industry since they were hit big in the real estate bubble that hit the industry back in 2009. Since the improvements in the industry and its ongoing stability, more commercial banks have regained their confidence in the construction industry.
Lenders are again willing to let developers borrow money, though it is not as high as it was in years before the huge hit on the industry.
Dezer mentioned that commercial banks are only looking to lend money to those who were still successful in spite the turn of events in the industry.
“They also only approve those construction projects which are in good locations.” Dezer added.
“The commercial banks are being picky with the loans that they have been approving,” Martin A. Schwartz, a Bilzin Sumberg partner based in Miami said. He is an expert when dealing with issues in the real estate industry. “They only approve those who are proven and have loads of money backing them up. Lenders nowadays want to have guaranteed paybacks, and they want to know whether or not the developers they approve of are reliable and effective.”
Another construction loan was approved in South Florida. It was a construction project by the Trump Group, which is headed by Eddie and Jules Trump. It is a $160 million construction for a high rise condominium project at Acqualina for Mansions. The construction project will be held at Sunny Isles Beach.
The partnership between Craig Robins and L Real Estate was also able to get a loan in July which was worth $251.5 million. This was for projects of various kinds which were going to be done in the Design District project and to be conducted by HSBC and Credit Agricole.
Schwarts also mentioned that the same partnership was also able to get a loan worth $50 million. It is going to be used for future development of high profile projects of different kinds.
For the Porsche design construction project, each condominium unit is priced between $5.3 million and $32.5 million. Buyers are required to pay 30 percent of the unit’s price upon purchase.