Crescent Heights has secured a $238.4 million refinancing package for its 588-unit luxury apartment tower, Forma Miami, located at 2900 Biscayne Boulevard in Miami’s Edgewater neighborhood. The company, led by Russell Galbut, Sonny Kahn, and Bruce Menin, completed the 40-story tower last year.
The refinancing was arranged through Freddie Mac’s Lease-up program, which is intended for multifamily properties nearing stabilization but not yet fully leased. Michael Stepniewski of Walker & Dunlop stated that although Forma Miami is now stabilized, with Galbut reporting it is 97 percent leased, it had not reached this status when the refinancing application was initially submitted.
Aaron Appel and Jonathan Schwartz of Walker & Dunlop represented Crescent Heights in the deal. The building features 85,000 square feet of amenities and a 50,000-square-foot Whole Foods Market. Designed by Rockwell Group and Arquitectonica, Forma Miami offers studios as well as one- to three-bedroom apartments with finishes comparable to condominiums. According to Apartments.com, rents in the building range from $3,080 to $7,515 per month.
Crescent Heights also owns nine acres of adjacent land with plans to develop it into a city center.
The refinancing comes amid ongoing activity in South Florida’s lending market despite high interest rates. Other recent refinancings include Treo Group’s $132 million for its Vox I and II student housing complex in South Miami, Midtown Capital’s $57 million bridge loan for its Astor Sound apartment project in Lake Worth Beach, and Acre’s $72 million refinance for the Adela at MiMo Bay development in Miami’s MiMo Biscayne Boulevard Historic District.
South Florida’s multifamily sector has seen an oversupply following a period of intense construction activity. Data from CoStar Group show that developers completed a record 18,600 apartments in the region last year, exceeding the 15,000 net new leases signed during the same period. This has resulted in lower rents and increased concessions for tenants.
Despite the oversupply, developers are moving forward with new projects in anticipation that demand will rebound by the time these buildings are finished in the coming years. Oak Row Equities is developing the 324-unit 2900 Terrace in Edgewater, while Miami Design District Associates recently obtained a $125 million construction loan for the 107-unit Cassi apartment project in the Miami Design District.
“Forma is already stabilized, but wasn’t when it initially applied for the refinancing,” said Walker & Dunlop’s Michael Stepniewski.
Galbut added: “The tower is 97 percent leased.”
