13th Floor Investments and Key International scored a $79.2 million construction loan for a 327-unit apartment complex in Delray Beach.
The financing comes amid continued lending for new rental projects in South Florida, despite a multifamily supply overhang in the tri-county region.
Coconut Grove-based 13th Floor and Brickell-based Key International started construction of the Skye complex at 2100 South Congress Avenue within their 50-acre Parks at Delray mixed-use project, according to the developers’ news release and a spokesperson. Boca Raton-based CDS International Holdings and Wexford Capital, with offices in West Palm Beach and Greenwich, Connecticut, are project partners.
CIBC Bank USA is the lender, the release says.
Designed by MSA Architects, Skye will consist of studios and one-bedroom to three-bedroom apartments, ranging from 560 square feet to 1,410 square feet. It also will have three-bedroom rental townhomes ranging from 1,670 square feet to 1,770 square feet.
Construction is expected to be completed in 2027, according to the release.
The master-planned Parks at Delray is on the southwest corner of South Congress Avenue and Old Germantown Road. Last month, the developers scored a $139 million refinancing for the Parks at Delray’s first phase consisting of the 420-unit Savio apartment complex. Savio is leased up, the release says. CIBC also was the lender on the refinancing.
Parks at Delray also will include commercial space, such as retail and dining, and a 1.5-acre park, media reports say. The developers paid $33 million, combined, for the entire development assemblage in late 2018, according to records.
Led by Arnaud Karsenti, 13th Floor was founded in 2008. After developing some of Miami-Dade County’s condo towers, the firm has focused on multifamily in recent years, including projects through public-private partnerships.
13th Floor and Barings are developing the 432-unit Cadence apartment tower at the Link at Douglas mixed-use project adjacent to the Douglas Road Metrorail Station in Miami’s Coconut Grove. 13th Floor is leasing the Link at Douglas site from Miami-Dade County.
The Ardid family’s Key International was started by patriarch Jose Ardid, and his sons, Inigo and Diego, now lead operations. The firm has a portfolio of more than 6,000 condos and apartments, and $2 billion of hospitality assets under management with more than 3,000 hotel keys, plus commercial investments. Its hotels include Eden Roc and Marriott Stanton Resort in Miami Beach, and it also developed the Ivy and Mint condos in downtown Miami.
Key International and 13th Floor have been frequent partners, including on North Miami Beach’s The Harbor and Miami’s 1010 Brickell. In Miami’s Brickell, they plan a 74-story, Nobu-branded condo tower with 300 units behind the First Miami Presbyterian Church at 609 Brickell Avenue.
Across South Florida, lease-ups at multifamily properties have slowed and concessions increased after a construction flurry in recent years. Developers completed a record 18,600 apartments last year, outpacing 15,000 net new leases, according to CoStar Group. In the 12-month period that ended Sept. 30, construction started on 14,515 apartments in South Florida, according to data from CoStar.
Developers starting new projects argue that demand will catch up by the time they complete their buildings next year and in 2027 and 2028. Property managers leasing the new buildings argue the continuing construction flurry will intensify a leasing slowdown.
In June, Oak Row Equities scored a $210.5 million construction loan for the 324-unit 2900 Terrace apartment tower on the northeast corner of Northeast 29th Street and Northeast Fourth Avenue in Miami’s Edgewater.
In Margate, Trammell Crow landed $66.4 million in August to build a 338-unit apartment complex at 785-795 South State Road 7.
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