$8.36M Bridge Loan Secured for Condo-Hotel Development in Miami’s Arts & Entertainment District

Forman Capital has issued an $8.36 million pre-development bridge loan secured by a residential development site along North Miami Avenue in Miami’s Arts & Entertainment District. The borrower, Royal Palm Companies (RPC), led by Dan Kodsi, plans to develop a 40-story condo-hotel on the properties, likely under the Elevate brand. The transaction was finalized on August 16, with Chief Investment Officer and Partner Scott Mehlman, along with Vice President Ty Regnier, closing the financing on behalf of Forman Capital.

The rendering above depicts a contemporary high-rise building with a rectangular form, featuring a repetitive grid of windows and balconies across its light-colored facade, likely clad in stucco. The structure includes a prominent black frame around the upper levels, possibly enclosing a rooftop area designed for amenities like a sky lounge. The podium of the building features large surfaces on both visible sides—one side displaying a marble-like pattern and the other featuring a large advertisement billboard.

1317 North Miami Avenue in January 2023. Photo from Google Maps.

“Forman Capital is excited to collaborate with a sponsor we have a longstanding relationship with,” Mehlman said. “Given Miami’s continued population growth and year-round tourism, this branded condo-hotel development should be extremely successful. We are particularly bullish on the product type and Miami’s urban core overall.”

The site, comprising two contiguous parcels totaling 0.49 acres, is located just north of downtown Miami at 1317, 1345, and 1353 North Miami Ave. Currently entitled for up to 245 residential units, RPC is working with the City of Miami to increase the site’s density to accommodate up to 360 units. Two existing commercial buildings operated by restaurant supply tenants are on the project site.

1353 North Miami Avenue in January 2023. Photo from Google Maps.

Founded by Dan Kodsi in 1978, RPC has delivered over 9,500 units and invested $4.7 billion in real estate. The project site benefits from its strategic location less than a mile from the I-95/I-395 interchange and is close to key attractions such as museums, parks, shopping, dining, Kaseya Center, and PortMiami.

“This is one of the more attractive undeveloped sites in the Greater Downtown Miami market,” commented Forman Capital Partner Ben Jacobson. “The combination of the site’s appeal, the developer’s track record, and pent-up demand for additional high-end condo-hotel inventory bodes well for the project’s sales activity.”

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