PPG Development and its partners have secured $235 million in financing to construct a 728-unit multifamily project in North Miami Beach. The funding includes a $205 million construction loan from BDT & MSD Partners and a $30 million preferred equity investment from Skylight Real Estate Partners and Meadow Partners, both based in New York.
The Palm Aire complex will be built on an 8-acre site at 1750 and 1775 Northeast 167th Street, formerly occupied by Nova Southeastern University. PPG is led by Ari Pearl, with Isaac Khabie of Ark Ventures and Matt Press of EquiShares as partners. According to Pearl and a company news release, development is expected to begin by the end of the month.
Aaron Kurlansky of Sheridan Capital represented both the borrowers and BDT & MSD. Aaron Jungreis and Alex Fuchs of Rosewood Realty Group represented the borrowers as well as Skylight and Meadow.
Miriam Ungar of PPG stated that Palm Aire will include two three-story buildings, two six-story buildings, an eight-story building, and two garages. All apartments will be leased at market-rate rents. “The project’s completion will be staggered to allow for newly finished apartments to lease-up before delivering additional units,” Ungar said. She also noted that one building will feature a bodega.
PPG, Khabie, and Press acquired the property from Dezer Development for $31.1 million in 2022. Ark Ventures and EquiShares are based in Miami. Dezer had purchased the site from Nova Southeastern University for $20 million in 2018. Nova Southeastern continued to occupy part of the site until its lease expired in summer 2023.
In 2023, city records show that developers received approval from North Miami Beach officials for the Palm Aire project.
Other developments are also underway in North Miami Beach. Trinsic Residential Group and Macken Companies are constructing Aura, an eight-story building with 373 units along with ground-floor commercial space at 16955-17071 West Dixie Highway.
Across South Florida, developers have increasingly relied on private lenders over the past three years due to stricter banking regulations following the Great Recession. Banks face capital requirements that limit their ability to provide new loans amid higher interest rates; some banks have had to extend maturities or offer forbearance to struggling borrowers instead of issuing new debt. As a result, alternative lenders like BDT & MSD Partners have filled this gap by offering more flexible terms.
BDT & MSD Partners was formed in 2023 through the merger of BDT & Company and MSD Partners. The firm recently refinanced Steve Ross’ One Flagler office tower construction loan in West Palm Beach, increasing it by $97.5 million (https://therealdeal.com/miami/2024/08/15/msd-bdt-refinances-steve-ross-one-flagler-tower-in-west-palm-beach/). Other recent financings include Grover Corlew’s $92 million loan from Affinius Capital for an apartment building in Fort Lauderdale (https://therealdeal.com/miami/2024/06/10/grover-corlew-scores-92m-loan-for-cypress-creek-apartment-project/) and Baron Property Group’s $206 million loan from Post Road Group for Metro Parc North apartments in Hialeah (https://therealdeal.com/miami/2024/03/19/baron-property-group-scores-206m-loan-for-hialeah-multifamily-project/).
