Downtown Hollywood’s Bread Building scored a $109.2 million refinancing, capping weeks of big loans in South Florida.
The financings come amid elevated interest rates and somewhat skittish capital markets, especially for regional multifamily that’s been battered by oversupply in recent years.
Fort Lauderdale-based developer BTI Partners and Salt Lake City-based Bridge Investment Group obtained the Freddie Mac loan from Greystone for the 25-story, 362-unit building it completed last year, according to a news release from Cushman & Wakefield, which arranged the refinancing. The debt has a 35-year amortization and interest-only payments for the full loan term.
The building, which replaced the former Hollywood Bread Company headquarters at 1770 South Young Circle, is fully leased. It’s next to the 10-acre ArtsPark at Young Circle.
Chris Moyer and Chris Lentz of Cushman arranged the financing. A Greystone team that included Richard Kourbage and Gillian McIIroy also worked on the deal.
BTI Partners, led by Noah Breakstone, paid $11 million in 2021 for the 1.6-acre site that included the original Bread Building and adjacent parcels. It completed the apartment building, including its 17,000 square feet of retail and 478 parking spaces, last year.
It consists of studios, and one-bedroom and two-bedroom apartments, with monthly rents ranging from $2,171 to $4,565, according to the property’s website.
The Bread Building’s completion came as South Florida was emerging from a three-year apartment supply overhang that resulted from a construction boom and leasing that couldn’t keep up. That led to a decrease in rents and landlord concessions.
South Florida has experienced several jumbo debt deals in recent weeks, though most have been for luxury condo construction.
David Martin’s Terra and Edgardo Defortuna’s Fortune International Group pulled in a $220 million pre-development financing for a planned 14-story, 56-unit oceanfront condo in Key Biscayne.
Fortune, this time in partnership with Shahab Karmely’s KAR Properties, landed $817 million in construction financing for the Faena Residences Miami along the Miami River. It’s the biggest condo construction loan in Florida history.
Also this month, Fortune and the Grosskopf family’s Château Group secured a $463 million loan package for the St. Regis Residences, Sunny Isles Beach.
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