Real estate investment firm Canyon Capital Realty Advisors has provided a $157m senior construction loan to a joint-venture between the Florida-based Related Group and SBE Hotel Group to finance the development of the SLS Brickell Hotel & Residences in Miami, Florida.
The construction loan will be used to develop a 54-story luxury mixed-use tower made up of 453 SLS-branded residential condominiums set atop a 124-room hotel.
The transaction marks Canyon Capital Realty’s 13th investment in Florida in the last four years and the fourth recent debt transaction in the Brickell neighborhood.
“After a long history of investing in Florida, we are excited to close our first transaction with Related, a prolific developer that has transformed the Miami skyline,” said Robin Potts, director at Canyon Capital Realty, in a statement.
The firm’s investments include a $123.6m senior construction loan made in October for Echo Brickell, a 57-story luxury residential condominium development; and a $28m construction loan made in November of last year for BrickellHouse, a 46-story, 374-unit luxury condominium property.
Manuel de Zárraga, executive managing director at HFF, which represented the borrowers, noted that Canyon was “one of the few lenders in that market that could handle a $150m-plus loan” without outside participants.
“We were looking for a one-stop financing solution for SLS Brickell, and we appreciated Canyon’s ability to move quickly to structure a loan which addressed the complications of the deal,” added Matthew Allen, Related’s executive vice president and chief operating officer, though the firms declined to disclose loan terms.
Architect Phillipe Starck is designing the hotel’s interiors, which will feature a gym, spa, a 6,000 sq ft ballroom, 2,000 sq ft of meeting space, a roof-top pool and outdoor roof-top dining and a triple-height drop off area with valet parking.