Estate Investments Group broke ground on the Soleste Grand Central apartments in Miami's Overtown with a $55.41 million construction loan.
The project is in an Opportunity Zone, so it could carry significant tax benefits should the developer hold it for many years.
Bank OZK provided the mortgage to Grand Central Miami Holdings, an affiliate of Miami-based EIG, which is led by Roberto Suris, and New York-based PTM Partners. It covers the 1.3-acre site at 218 N.W. 8th St.
According to a source familiar with the deal, the developer also received $18 million in mezzanine financing through Nationwide Life Insurance Co.
Bilzin Sumberg attorneys Alexandra Lehson, Jay Sakalo and Jon Chassen represented the borrowers in securing financing.
“The development of Soleste Grand Central is doing precisely what Opportunity Zones are intended to do: encourage credible sponsors such as PTM Partners and Estate Investments Group to stimulate new economic development in an underserved area, while filling a void in the market with 360 new first-class apartment units at attainable prices," the Bilzin Sumberg attorneys said in a statement.
The developer's in-house general contractor recently filed notice that it started construction there.
Soleste Grand Central will total 220,000 square feet. The 18-story building will have 360 apartments, 6,500 square feet of retail, 2,250 square feet of offices and 438 parking spaces. The amenities on the fourth floor would include a pool, a fitness center, a kid's playroom, a coworking space and a lounge.
The developer agreed to offer 10 apartments for families earning no more than 80 percent of the area's median income, 15 apartments for families earning no more than 100 percent of the area's median income, and another 15 apartments for families earning no more than 120 percent of the area's median income.
Soleste Grand Central was designed by Caymares Martin Architectural and Engineering Design.
The developer acquired the property for $9.7 million in February.