MG Developer, known as one of the most active developers in The City Beautiful, announces it secured an $11 million loan by Knighthead Funding, LLC for the acquisition of the 111,026 square foot parcel at 535 Santander Avenue in the heart of Coral Gables.

Knighthead Funding, LLC provided the 12-month loan, with full-term interest only.

“We are proud to be MG Developer’s lending partner to purchase this unique parcel and are looking forward to seeing how this project further elevates Coral Gables,” said Brian Sullivan, Vice President of Knighthead Funding, LLC.

Plans for the notable new development called Gables Village, the 48-unit Seville-inspired residential community, will pay homage to George Merrick’s legacy and history in the form of shaded tree-lined streets, plazas, parks and fountains. MG Developer’s CEO, Alirio Torrealba, plans to revive George Merrick’s original vision for this parcel of the city in a classic, yet modern way.

“We are truly grateful to partner with Knighthead Funding for trusting in our vision and providing the loan to acquire the property where the neighborhood of Gables Village will be built and will further enhance the beautiful city we live in, while honoring George Merrick’s legacy. We have no doubt we will make our partners, residents, and neighbors proud of this new enclave,” said Alirio Torrealba, CEO of MG Developer.

Now in its planning stages, the project is expected to be completed in 2024. The village will consist of duplexes, townhouses, and condominiums set throughout 17 lots, featuring one-bedroom flats to four-bedroom townhomes that range in size, from 1,750 sq. ft. to 3,100 sq. ft.

The acquisition furthers MG Developer’s presence in Miami, complementing the existing Biltmore Square, a luxury village development in the heart of Coral Gables.MG Developer actively enhances Coral Gables’ culture and aesthetic with niche properties that fit within the city’s aesthetic values and tradition.

For more information about MG Developer, visit mgdevelopermiami.com.

Knighthead Funding LLC, has originated separate loans totaling $37.3 million for the development of three multifamily projects in Michigan.

All three non-recourse loans range in term from 18 to 36 months and are secured by assets in distinctively different  markets. Knighthead worked with each borrower to develop an individualized strategy to allow each developer to successfully execute its business plan.

“These three transactions show how Knighthead’s flexible source of capital was able to structure its debt according to the unique needs of each borrower; whether the project was mid-construction, ground up or extensive interior rehabilitation,” said Knighthead Funding Principal, Jonathan Daniel. 

In the largest of the financings, Knighthead provided a Michigan-based developer with a $17.7 million first mortgage loan to finance the completion of a four-story, 78-unit building with 162 parking spaces and 9,716-square-feet of ground-level retail in Traverse City. 

The property has a mix of studio, one-, two-, and three-bedroom apartment homes that will feature high-end finishes like stainless steel appliances, polished concrete floors and washer and dryer units in each apartment.

One of the region’s top high-end vacation spots, Traverse City has experienced significant growth over the last eight years, with a  population increase of approximately 6.4 percent, making Traverse City the largest city in the 21-county Northern Michigan region. The influx of permanent residents into the market has created a growing need for additional quality multifamily properties. 

With the second financing, Knighthead provided Greatwater Opportunity Capital with a $10.8 million loan for the acquisition and renovation of two multifamily buildings in Midtown Detroit. The two buildings are located in Midtown’s Cass Corridor in an opportunity zone and feature 118-units and 4,600 square-feet of retail space. Both properties will receive extensive renovations that will include building system upgrades and exterior work.

Midtown is one of Detroit's most rapidly growing neighborhoods with a 9.2 percent increase in the millennial population and a 26 percent growth in tech jobs since 2015. The market’s strengthening economy and steady population growth has created continued need for quality multifamily housing. As a result, even with the consistent delivery of new supply to market, over the past five years annual rent growth has never been below 2.5 percent.

Over the last several years, Greatwater, whose principals are Detroit natives, have focused on investing in Detroit’s neighborhoods, producing positive local outcomes and superior returns, assembling a portfolio of 510 units across a dozen multifamily properties.

Knighthead also provided an $8.8 million loan for the construction of a 19-unit condominium building in Downtown Ann Arbor. 

Branded “The Gallery,” the property, which is 50 percent pre-sold, is located in the Old West Side neighborhood and within walking distance to the University of Michigan and downtown Ann Arbor, creating interest from alumni and professionals who work in downtown Ann Arbor.

“Based on the Sponsor’s development experience, strong presale numbers, unit layouts and downtown location, we are confident in the success of the business plan.”  said Knighthead Senior Associate, Peter Illuzzi.

Sponsorship is headed by Alex de Parry, who founded Ann Arbor Builders, Inc. in 1971, and who is highly experienced with a successful track record of multi-family, single-family and mixed use construction, development and renovations, including the nearby Mark Condominium, which was completed in 2016.

Commercial mortgage lender Knighthead Funding, LLC has funded a $75 million construction loan to complete a luxury condominium development in Sarasota, FL.

Knighthead Funding was able to fund the 24-month construction loan within 30 days of executing the term sheet.   With new financing in place, the sponsorship, a partnership between Michigan-based real estate investment firm Promanas and Florida-based development firm Core Development, Inc., is expected to complete construction of BLVD Sarasota and deliver the residences on time in the first quarter of 2020. 

“The collective experience of our executive team allows us to understand the circumstances of each transaction, and structure loans to meet the specific needs of each borrower,” said Knighthead Funding Principal Jonathan Daniel.  “We will continue to rely on our ability to react and close loans quickly in order to build on our lending portfolio throughout the United States.  We expect to originate more than $600 million in short-term debt in 2019.”

Located at 1224 Blvd of the Arts in Sarasota’s exclusive Rosemary District, BLVD Sarasota is an 18-story luxury high-rise with 49 luxury residences ranging in size from 3,550 to 5,500 square feet, some of the largest floorplans in the city.   Each home will boast a gourmet kitchen, 11-foot ceilings, and large wrap-around terraces offering water or city views.   Building amenities include an enhanced golf simulator, a Peloton based fitness center, and a wine cellar for the storage of private collections. The project is currently over 44 percent pre-sold. 

This financing represents the largest in Knighthead Funding’s five-and-a-half-year history, according to Daniel.  Since inception, Knighthead Funding has deployed nearly $1 billion in short term-bridge debt as the firm continues to increase loan size and geographic reach, which includes the firm’s first four loans in California since becoming licensed in the second half of 2018.  To date, Knighthead has funded loans in 19 states across the country. 

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Knighthead Funding, LLC has provided Noah Properties Chicago with a $14.36 million construction loan for the Roselle Apartments (Roselle), a multifamily community in the Chicago submarket of Glendale Heights/Lombard.

When completed in the first quarter of 2020, Roselle will feature 72 two-bedroom, two bath townhomes in six, three-story buildings located at 22W456 Irving Park Road.  Each home will include stainless appliances, stone countertops, walk-in closets and washer and dryer. 

Due to a time-sensitive closing following a recent rezoning, Knighthead was able to meet the sponsor’s tight deadline and fund the 18-month, non-recourse loan. 

The transit-oriented development is located less than two blocks from the Roselle Metra station, leaving it approximately a 45-minute ride from Chicago’s Union Station and approximately 10 minutes from O’Hare International Airport.

“The submarket benefits from strong multifamily occupancy and limited new supply.  The project’s desirable unit sizes and layouts, along with its proximity to the Metra Station, which provides convenient transportation to downtown Chicago, make this development very attractive. We were also very impressed with sponsorship, Noah Properties Chicago, which has significant experience and a proven track record in constructing this type of product across Chicago,” said Peter Illuzzi, who handles loan originations in the Midwest for Knighthead.  

Private real estate lender Knighthead Funding, LLC has provided Denver, CO-based real estate investment and development firm Alpine Investments with a $20 million construction loan for Edge LoHi, the first new condominium development in Denver’s Lower Highland’s (LoHi) submarket in nearly a decade. 

“It is no secret that Denver boasts one of the strongest economies in the United States, yet it is one of the most undersupplied condo markets among the major U.S. metros,” said Knighthead Principal Jonathan Daniel who led the origination team with vice president Henry Boeckmann out of Knighthead’s Greenwich, CT office. “Much of the city’s impressive job growth is occurring downtown with the creation of thousands of new high paying jobs, particularly in the technology sector which has exploded over the past five years. Edge LoHi is located in one of the most vibrant and upscale center city neighborhoods and is well positioned in the market to take advantage of the strong condo demand in downtown Denver.  

Edge LoHi was approximately 35 percent pre-sold at the close of financing, signaling the high demand for condo units in LoHi. 

“LoHi has benefited from thoughtful growth over the past decade and has become an attractive option for those who want a neighborhood feel in Downtown Denver,” said Alpine Investments Managing Principal Churchill Bunn.  “Its walkability combined with an attractive balance of retail and residential, appeals to both empty nesters and millennials, and Edge LoHi was designed to appeal to both demographics.” 

When completed in 2019, Edge LoHi will feature 44 luxury one-, two- and three-bedroom floor plans ranging from 650 square feet to nearly 2,500 square feet.   Starting at the low $400,000’s, each unit will feature high-end design elements such as quartz countertops, walk-in closets, balconies, wide plank wood flooring and premium appliances.   The unit mix also will include two-story, loft-style penthouses on the fifth floor, each with its own fireplace, wine cooler, upgraded Viking appliance package, 17-foot floor-to-ceiling glass line and private terraces off the mezzanine level.  Community amenities will includea dog spa, storage units, bike storage and repair room, lobby lounge with a fireplace and coffee bar, and secured building and garage access.  The Edge LoHi also will feature 4,200 square feet of street-level, community-serving retail. 

“Knighthead presented an attractive three-year, floating-rate non-recourse loan package that was extremely competitive, especially for a condo project in this market,” added Bunn.  “The principals were extremely knowledgeable about the Denver market, which allowed them to fully understand our business plan.  We hope to build a long-term relationship with them.”