Edgardo Defortuna’s Fortune International Group and Shahab Karmely’s KAR Properties closed on an $817 million construction loan for Faena Residences Miami, marking the largest such loan in Florida history.
Tyko Capital is providing the financing, according to a news release. The project has been in the works for more than a decade. In 2022, Karmely brought on Defortuna’s firm as a joint venture partner and launched the Faena-branded project in 2024.
The financing means the developers will begin building the 440-unit, two-tower development at 24 Southwest Fourth Street, along the Miami River. The towers will connect via a three-story sky bridge, and the project will be anchored by the 45,000-square-foot Faena Rose community center. KAR previously planned to develop the Rafael Viñoly-designed One River Point on the site.
Construction of Faena Residences Miami is expected to be completed in early 2030, according to the release. Walker & Dunlop arranged the financing.
New York-based Tyko has been an increasingly active construction lender in South Florida. Earlier this month, Terra and its partners closed on a $507 million construction loan from Tyko for their planned luxury condo tower at 1250 West Avenue in Miami Beach. In April, Related Group and BH Group secured a $360 million loan for Icon Beach Waterfront Residences in Hollywood, also from Tyko.
Faena Residences Miami marks the second Faena-branded mixed-use development in South Florida, after the Faena District in Miami Beach, which includes the Faena House condo building.
The Miami River developers announced this summer they presold a penthouse for $30 million, which would set a record for the area once it closes. The developers said they have more than $500 million in presales.
Miami is the branded residential capital of the Western Hemisphere, second only in the world to Dubai. At least 66 branded condo developments with 15,000 condos and condo-hotel units are in the pipeline in South Florida, according to a recent analysis by The Real Deal. Brands can offer buyers more value, sometimes a markup of 20 to 30 percent.
Read more
Faena Residences developers presell $30M penthouse for record price along Miami River
Inside South Florida’s branded condo boom
“A place of fantasy”: KAR, Fortune’s Faena Residences on Miami River kickstarts high season
