Turkish developer Okan Group has secured $200 million in C-PACE financing for its Hilton-branded condo-hotel tower currently under construction in downtown Miami. The loan was provided by Bayview PACE, a lender based in Coral Gables. C-PACE, or Commercial Property Assessed Clean Energy, is a program that promotes the use of energy-efficient and sustainable materials and design in real estate projects.
Bayview PACE has previously been involved in other major transactions, such as providing $180 million in C-PACE debt for North Development’s Domus Brickell Center.
The Okan Tower, which is being built at 555 North Miami Avenue, has reached the 40th floor of construction. Once completed in 2028, the building will stand at 903 feet tall. The project will feature a 316-key Hilton hotel, 236 condo-hotel units managed by Hilton, 163 condos, over 80,000 square feet of amenities space, and 56,000 square feet of office space. There will also be a parking garage with 429 spaces.
Behar Font & Partners designed the building. This project marks Okan Group’s first development in the United States. The company is based in Turkey and operates across several sectors including healthcare, finance, food, textiles, tourism, energy, education and real estate through its general contractor division Okan Construction.
Michael Sadov of Fortune Development Sales is leading sales efforts for the project. Last fall, the developer announced eligibility to raise EB-5 funds for the tower.
Okan Group has self-funded construction so far but paused work during the pandemic before resuming sales activities the following year. An affiliate of Okan purchased the development site—measuring about 0.8 acres—for $18.1 million in 2017. The site is located near other recent developments like the Crosby at Miami Worldcenter and Melo Group’s Downtown 6th.
Other developers have also obtained significant loans with C-PACE financing recently. For example, Naftali secured $465 million for its JEM Private Residences tower at Miami Worldcenter last November; this included $235 million from Nuveen Green Capital through C-PACE and $230 million from BHI (Bank Hapoalim’s U.S. arm) via traditional construction loans.
