The Avenue in Downtown Naples Secures $202 Million Construction Loan

The Avenue has closed on a $202 million construction financing package as the mixed-use development approaches its vertical construction phase along Fifth Avenue South in downtown Naples. Developed by APREA and JSB Capital Group and designed by Morris Adjmi Architects and MHK Architecture, the project will introduce 50 luxury residences above 75,000 square feet of boutique retail, dining, wellness, and lifestyle space. DeAngelis Diamond is serving as general contractor.

The financing package, provided by Bayview Commercial Mortgage Finance, consists of $109 million in Commercial Property-Assessed Clean Energy financing and a $93 million traditional construction loan. Bayview PACE, a division of Bayview Commercial Mortgage Finance, is providing the C-PACE financing through two assessments and closings. The transaction was brokered by JLL’s Debt Advisory team, led by Scott Aiese and Alex Staikos.

Following its groundbreaking earlier this year, foundation work is underway and vertical construction is scheduled to rise in August.

The project is designed to reimagine the gateway to Fifth Avenue South through architecture inspired by the historic character of Naples, incorporating public spaces, pedestrian connections, and a mix of retail, dining, wellness, and lifestyle offerings beneath a limited collection of residences.

The development will comprise four three-story buildings arranged around landscaped pedestrian walkways that strengthen the connection between Fifth Avenue South and the surrounding neighborhood. The commercial component will feature boutiques, restaurants, wellness concepts, and lifestyle retailers, while the residential program will be limited to 50 condominium residences.

According to the development team, residential sales continue to outpace expectations, while the retail component has generated strong early leasing interest as the tenant mix is curated to complement the existing character of Fifth Avenue South.

“Closing this financing is a significant milestone for The Avenue and reflects the confidence our partners have in both the project and the Naples market,” said Andy Penev, Founder of APREA.

“Seeing construction scale vertically after years of planning is incredibly rewarding. We’re building something that will redefine the gateway to 5th Avenue South and become a cherished addition to downtown Naples. We’re grateful to Bayview PACE and JSB Capital Group for their partnership and shared vision in making The Avenue a near-term reality.”

“We are proud to be partners in an iconic project that will redefine the entry experience into 5th Avenue South,” said William Grant, a JSB Senior Managing Director. “We are grateful to Bayview for another successful debt execution and look forward to working closely with APREA in delivering the architectural jewel this special thoroughfare deserves.”

“We supported the project during its pre-development stage and are thrilled to continue that support by providing an innovative combined C-PACE and mortgage execution. This structure offers significant flexibility and alignment benefits for strong projects like The Avenue. We’re excited to support JSB Capital and the development team with capital tailored to the project’s timeline and investment objectives,” said AK Prabhakar, Senior Vice President of Commercial Originations at Bayview.

Commercial Property-Assessed Clean Energy financing has become an increasingly utilized funding mechanism for developments incorporating qualifying energy efficiency and resiliency improvements. According to the development team, the program has been approved in 40 states and has facilitated more than $13 billion in transactions nationwide.

Initial homeowner move-ins are anticipated in early 2028. Sales and marketing for the residences are being handled exclusively by the Dawn McKenna Group of Coldwell Banker Realty.

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