Mercantil Commercebank has provided a $50 million construction loan on a 108,900 sq ft apartment project in Southern Florida.
The bank provided the loan to Fairfield Residential Properties to build 292 apartment units on the vacant lot at NE 7th Avenue and 2nd Street in downtown Fort Lauderdale.
Miami-based Mercantil Commercebank is one of the largest privately held banks in South Florida, managing over $10 billion in assets, according to the company’s annual 2015 report.
Fairfield has built over 104,000 market rate and affordable apartment homes, condominiums, and off-campus student housing units throughout the US since 1997, according to the company site.
Increasing tourism, population and retail projects are expected to spur construction in the South Florida multifamily market the next several years, according to a report on South Florida real estate that Cushman & Wakefield published last year. “Demand is expected to outpace supply in the forecast horizon,” the report states.
Earlier this month, Square Mile Capital Management originated a five-year, $33.3 million floating-rate loan on the Cypress Financial Center in Fort Lauderdale; while in nearby Miami, Goldman Sachs and Bank of China provided a $795 million refinancing on the Fountainebleau Miami Beach hotel and Allianz Life Insurance provided a $49.75 million mortgage on a 280,000 sq ft office park.