The Related Group Secures $400 Million Loan for Ultra-Luxury Fisher Island Project
June 14, 2024
The Related Group and its partners have secured a $400 million construction loan for the Residences at Six Fisher Island, an ultra-luxury condominium project. This financing adds to over $2 billion in condo construction loans that have closed in South Florida over the past year.
The Miami-based Related Group teamed up with billionaire Teddy Sagi, the Toledanos’ Aventura-based BH Group, and Chicago-based Wanxiang America for this 10-story, 50-unit building, currently under construction. Madison Realty Capital, based in New York, provided the financing, as stated in a press release. The project is slated for completion in 2026.
Related has achieved strong presales for this project, reducing the risk for lenders. Since sales launched in 2022, Six Fisher Island has secured over $500 million in presales, with remaining units asking more than $4,000 per square foot. According to The Real Deal, two penthouses have already been contracted to separate buyers for a combined total of $150 million.
When sales began two years ago, asking unit prices averaged $30 million, with penthouses starting at double that price. Douglas Elliman is leading the sales and marketing efforts. The units themselves average more than 4,800 square feet.
A Berkadia team, including Scott Wadler and Michael Basinski, arranged the financing.
The Related Group is among several developers who have secured large construction loans in recent months. Related Group and GTIS Partners obtained $328 million in construction financing in March for their planned Baccarat Residences condo tower in Miami’s Brickell neighborhood, provided by Bank OZK. In February, Mast Capital secured approximately $600 million in construction financing for the Cipriani Residences condo tower, also in Brickell, with Banco Inbursa providing $350 million and Ascendant Capital Partners providing $250 million.
