January 10, 2022 9:00 AM
On behalf of Mast Capital, Newmark has arranged a $62.5 million loan to facilitate the acquisition and pre-development financing of 1420 South Miami Avenue. The 1.38-acre parcel can yield 690 residential units, although Mast Capital doesn’t intend to maximize density.
The collateral of this financing is roughly half of Mast Capital’s larger acquisition of the entire 2.8-acre, full-block development site for $103 million. Mast Capital sourced the acquisition through a strategic local relationship, leaning on their proven track record and renowned reputation in South Florida. The loan was provided by MSD Partners & CanAm Enterprises.
The Newmark team was led by Jordan Roeschlaub and Dustin Stolly, Nick Scribani, Chris Kramer and Daniel Matz, as well as Dan Morin. Matz, based in Miami, joined earlier this year to bolster the Debt & Structured Finance team’s presence in the Southeast Region.
The MSD Capital team is led by Adam Pierkarski and Jason Kollander, co-heads of MSD’s credit business. Pierkarski attributes their investment to: “MSD’s firm commitment to the future of South Florida and the best-in-class developers that are able to navigate the fierce competition of the area.”
The property is located on South Miami Avenue, which runs through Mary Brickell Village to Brickell City Centre and is one of the primary corridors for dining and entertainment in Brickell. The highly desirable location rests on the edge of Brickell’s high-density overlay, providing the proximity benefits of being in the urban core, while also benefiting from reduced congestion and easier access to major roadways. Each tower within the Site will offer ground-floor, experiential retail for the benefit of the future residents. The shared podium will also offer world-class pools and amenities.
“Brickell is one of the most dynamic condo markets in the country, supported by record absorption in the last five years, as well as unprecedented appreciation over the last 18 months,” says Roeschlaub. “We are pleased to have secured highly accretive financing for the Mast team and look forward to watching this project unfold.”
“The site is undoubtedly one of the last remaining development opportunities of comparable scale in all of Brickell,” Stolly adds. “Having made this acquisition at a critical point in time for South Florida real estate, Mast Capital is the beneficiary of significant market appreciation.”
On having a strengthened team presence in Miami and the Southeast Region, Matz references the “tremendous opportunity for the team to create a foothold in Miami at a critical time when the city is experiencing incredible growth.”
“It’s vital to have a local presence to enhance coverage for the team’s existing client base, in addition to creating new relationships with strong local sponsors like Mast Capital,” Matz says.
This local presence offers the team a strategic vantage point across the U.S.’ Sun Belt.
“The Southeast, with business and tax friendly markets like Nashville, Raleigh and Atlanta, have become a magnet for the technology and crypto industries,” Matz adds. “Many of our clients have figured this out, whether from New York or California. Now South Florida has raised that bar.”
The sponsorship is led by Mast Capital, one of South Florida’s premier developers.
About Mast Capital
Established in 2006, Mast Capital is a value-oriented real estate investment company with integrated development and asset management teams. Mast Capital has made successful acquisitions in the residential, hospitality, office, retail and land sectors, and targets opportunistic and value-add investments in existing property, ground-up development, distressed real estate, and note purchases. The firm employs a sophisticated approach to structuring its acquisitions, maximizing value to its investors while providing creativity and flexibility to sellers and other third parties to execute highly complex transactions. Mast Capital is led by a senior management team with over 60 years of combined real estate experience and transactions totaling more than $3.5 billion. For more information on Mast Capital’s portfolio, visit www.mastcapital.com.
Newmark Group, Inc. (Nasdaq: NMRK), together with its subsidiaries (“Newmark”), is a world leader in commercial real estate, seamlessly powering every phase of the property life cycle. Newmark’s comprehensive suite of services and products is uniquely tailored to each client, from owners to occupiers, investors to founders, and startups to blue-chip companies. Combining the platform’s global reach with market intelligence in both established and emerging property markets, Newmark provides superior service to clients across the industry spectrum. Newmark generated revenues in excess of $2.5 billion for the trailing twelve months ending September 30, 2021. Newmark’s company-owned offices, together with its business partners, operate from over 160 offices with approximately 6,200 professionals around the world. To learn more, visit nmrk.com or follow @newmark.
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