The developer of the Ritz-Carlton Residences, Palm Beach Gardens, scored $340 million in construction financing for the project, marking the largest such loan to close this year statewide.
Dan Catalfumo’s Catalfumo Companies secured the financing from New York-based Madison Realty Capital, according to a press release. Construction on the condominium development could begin this summer, though it was slated to start last year.
The waterfront project will include three seven-story buildings with 106 condos. It’s planned for an 11-acre site south of PGA Boulevard. Douglas Elliman is leading sales and marketing, with three-bedroom to five-bedroom units asking between $4 million to more than $8 million, according to the release. The development is expected to be completed in 2025.
Catalfumo has presold about $75 million worth of units so far, according to the release.
He bought the majority of the site for $33 million in 2021 from EB-5 developer Nick Mastroianni. It has about 850 feet of frontage along the Intracoastal Waterway.
Josh Zegen, managing principal of Madison Realty Capital, said in a statement that the loan closed in 60 days.
Some developers have been able to close monster-sized loans this year — with Bank OZK providing the largest ones in South Florida. In January, Bank OZK provided a $215 million construction loan to a group led by L&L Holding Company and Oak Row Equities for Wynwood Plaza. The 1-million-square-foot office, apartment and retail project is planned for 95 Northwest 29th Street in Miami.
Developer Vlad Doronin and investor Len Blavatnik secured a $242.4 million construction loan for the planned oceanfront Aman Miami Beach luxury condo development. Developer John Catsimatidis closed on a $252 million construction loan for The Residences at 400 Central, which is expected to mark the tallest tower on Florida’s Gulf Coast. Bank OZK provided both loans, also in January.
Last month, Tavistock Development Company scored a $175 million construction loan for its waterfront Pier Sixty-Six mixed-use project in Fort Lauderdale. A group of banks led by HSBC Bank provided the construction loan.
Still, it’s become more challenging to secure financing since interest rates began rising last year. That became even tougher following the string of recent bank collapses that started in March with Signature Bank and Silicon Valley Bank.
Madison Realty’s recent loans in South Florida include $55.1 million it lent in March for the planned Savanna condo tower in West Palm beach, as well as $85 million for Related Group, BH Group, Teddy Sagi and Wanxiang Group’s ultra luxury Fisher Island project.