Trammell Crow Residential scored a $66.4 million construction loan for a 338-unit apartment complex in Margate.
The deal comes as financing for new South Florida residential projects continues to flow, despite elevated interest rates, slower lease-ups and other headwinds.
Dallas-based Trammell Crow, the multifamily development arm of Crow Holdings, plans the apartment complex with five five-story buildings on a 9.2-acre vacant site at 785-795 South State Road 7 and an adjacent empty lot, according to records. The mortgage filing indicates the project will be under Trammell Crow’s Alexan multifamily brand.
Trammell Crow bought the development site for $9.8 million from 777 Properties, which is led by Michael Shooster, according to records and real estate database Vizzda. U.S. Bank is the construction financing lender.
Shooster is CEO of Margate-based Shooster Holdings Corporation, which oversees phone answering, virtual receptionist and contact center services. Shooster also is listed as a real estate developer for Margate-based 777 Properties.
In September, the Margate City Commission approved the proposal for the apartment complex, city records show. At the time, Rez Se Land, an entity led by developer Saul Perez, filed the application.
Perez is reportedly partnering with Trammell Crow on the project.
Crow Holdings, led by Michael Levy, has invested in several South Florida apartment properties, and its Trammell Crow subsidiary has completed multiple projects in the tri-county region. Nationwide, Trammell Crow has completed more than 285,000 units in the past four decades, according to its website.
In July, Crow Holdings paid $97.5 million for the 376-unit 33 West Apartments complex with 14 three-story buildings and two one-story buildings at 6300 Southwest 24th Place in Davie. In December, Trammell Crow sold the 250-unit Solena Miramar complex at 3155 Southwest 147th Terrace in Miramar for $67.5 million, after completing it last year.
In 2022, Trammell Crow and Washington, D.C.-based private equity firm Carlyle completed the 368-unit Casero Apartments complex at 8255 Park Boulevard in unincorporated Miami-Dade County’s Fontainebleau neighborhood. The pair sold it for $156 million in 2023 to Stockbridge.
South Florida’s multifamily leasing and rent growth has calmed compared with the pandemic bonanza. That’s due to a slowdown of the influx of out-of-state residents and a supply overhang from recent years’ development frenzy.
Yet, developers continue to score construction financing, saying that demand and rent hikes will resume by the time their projects are completed.
Oak Row Equities landed $210.5 million in financing in June to build the 38-story, 324-unit 2900 Terrace apartment tower on the northeast corner of Northeast 29th Street and Northeast Fourth Avenue in Miami’s Edgewater. Alex Karakhanian’s Lndmrk Development is a project partner.
In Fort Lauderdale’s Cypress Creek area, Grover Corlew scored a $92 million construction loan in June for the seven-story, 312-unit apartment building at 6261 Northwest Sixth Way. In Davie, 13th Floor Investments and JSB Capital Group nabbed a $67.5 million construction loan in March for the 383-unit, five-story Parks at Davie apartment complex on the northwest corner of Davie Road and Southwest 37th Street.
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