Record-Breaking $600M Construction Loan Secured by Mast Capital for Cipriani Condo Tower in BrickellFebruary 9, 2024
According to sources familiar with the matter, Mast Capital has successfully secured approximately $600 million in construction financing for its ambitious Cipriani Residences condo tower project in Miami’s bustling Brickell Financial District. This landmark deal marks the largest-known condo construction loan ever closed in South Florida, surpassing the previous record set by the Trump Group’s $558 million construction loan for the Estates at Acqualina in Sunny Isles Beach, provided by Bank OZK in 2018.
Based in Coconut Grove and helmed by Camilo Miguel Jr., Mast Capital obtained substantial financing from a consortium of lenders led by Banco Inbursa, which includes funding mezzanine. The loan arrangement was facilitated by a Newmark team spearheaded by Jordan Roeschlaub, Nick Scribani, and Dustin Stolly. The funds will fuel the construction of an 80-story luxury high-rise comprising 397 units, as planned for 1420 South Miami Avenue.
A spokesperson for Mast confirmed the loan’s closure, revealing that Banco Inbursa contributed $350 million, with an additional $250 million provided by Ascendant Capital Partners.
Mast Capital had diligently pursued financing for the project over several months. Collaborating with hospitality firm Cipriani, led by CEO Giuseppe Cipriani, Mast initiated sales of the building nearly two years ago, with Edgardo Defortuna’s Fortune Development Sales overseeing sales and marketing efforts, resulting in over 50 percent of the units being presold.
A groundbreaking ceremony is slated for Tuesday, with the tower’s completion anticipated in 2028. Unit prices start at $1.7 million, offering a collection of 74 condos, including six penthouses, with additional amenities and services available on the top 18 floors.
Designed by Bernardo Fort-Brescia’s Arquitectonica and interior design firm 1508 London, Cipriani Residences will boast exclusive features such as a private restaurant and speakeasy for residents, a resort-style pool deck with swimming pools and cabanas, and a wellness center, fitness center, and pickleball court.
Mast Capital acquired the 2.8-acre development site for $103 million over two years ago, with plans for two apartment high-rises on the same premises. Collaborating with Rockpoint Group as an equity partner on the rental component, Mast Capital continues to expand its footprint in the vibrant Miami real estate market.
Despite prevailing challenges, such as high interest rates and stricter lending conditions, a select group of condo developers has recently secured substantial financing. This trend is attributed to solid presales figures and the ability of developers to utilize buyer deposits for construction funding, mitigating lenders’ risk.
Banco Inbursa’s involvement in large-scale financing ventures extends beyond Mast Capital’s project, with recent participation in providing a $95 million construction loan for the Merrimac Ventures and Aria Development Group’s 600 Miami Worldcenter condo tower project.
Cipriani Residences represents the inaugural residential venture for the renowned Cipriani brand, although the Italian family behind it has additional projects in progress. The brand’s fourth generation, represented by Giuseppe Cipriani’s children, Ignazio and Maggio Cipriani, has established the Mr. C brand, operating the Mr. C hotel in Coconut Grove and soon-to-be-completed Mr. C Residences, also in Coconut Grove.
The surge in branded condo projects, including those by esteemed hospitality and luxury brands like Casa Tua, Bentley, Baccarat, and Ritz-Carlton, underscores the vibrant growth of the tri-county region’s real estate landscape.