Mast Capital and Starwood Secure $390M Loan for Miami Beach Condominium Project

Mast Capital and Starwood Capital Group Secure Major Financing for The Perigon in Miami Beach

In a significant development for Miami Beach’s luxury real estate market, Mast Capital and Starwood Capital Group have successfully secured a substantial $390 million construction loan from Eldridge Real Estate Credit for their oceanfront condo project, The Perigon. This financing marks a pivotal step in the construction of the 17-story, 73-unit luxury condominium, which is set to redefine coastal living in one of Florida’s most sought-after locations.

The Perigon: A New Icon on Collins Avenue

Located at 5333 Collins Avenue, The Perigon is poised to become a landmark in Miami Beach. With an expected completion date in 2027, the building is already making waves in the market, boasting a presale rate of approximately 75%. The units, which range from 2,100 to 6,700 square feet, feature two to four bedrooms, catering to a diverse clientele seeking luxury living. Prices for these exclusive residences start at just over $10 million, a significant increase from the initial $3 million starting price when sales launched in 2022.

The architectural vision for The Perigon comes from the renowned firm OMA, led by celebrated architect Rem Koolhaas, while the interiors are designed by Tara Bernerd. The project promises to offer an impressive array of amenities, totaling around 40,000 square feet, including a restaurant and a speakeasy curated by Michelin-starred chef Shaun Hergatt, ensuring that residents will enjoy a lifestyle of unparalleled luxury.

Financing and Development Dynamics

The financing from Eldridge Real Estate Credit, part of billionaire Todd Boehly’s Eldridge Industries, underscores the growing confidence in South Florida’s luxury condo market. Eldridge is also known for its ownership of the Delano, a beachfront hotel in Miami Beach currently undergoing renovations. This loan is part of a broader trend where developers in South Florida are securing substantial financing to capitalize on strong presales and the region’s booming real estate market.

In recent months, other developers have also reported significant construction financing deals. For instance, Terra and One Thousand Group secured a $285 million loan for their Villa Miami project, while Related Group and Integra Investments obtained a $527 million loan for the St. Regis Residences in Brickell. These developments highlight the robust demand for luxury condominiums in the area.

Challenges and Controversies

While the financing and construction of The Perigon are progressing, Mast Capital has faced challenges related to its previous projects. In 2021, the company acquired the majority of units at the La Costa condo building, which was subsequently demolished to make way for The Perigon. Additionally, Mast Capital has been involved in contentious negotiations with owners of the neighboring Amethyst condo building, where many owners allege that the developer has breached contracts and delayed buyouts, leaving them in a state of uncertainty.

A recent court ruling favored a couple who sued Mast Capital over the sale of their condo at the Amethyst, highlighting the ongoing legal disputes surrounding the developer’s practices. The sellers claimed they were trapped in a contract with no clear deadline for performance, raising concerns about the developer’s commitment to timely transactions.

The Future of Luxury Living in Miami Beach

Despite the challenges, The Perigon represents a significant investment in Miami Beach’s luxury real estate landscape. As the project moves forward, it is expected to attract affluent buyers looking for high-end living spaces in a prime location. The combination of innovative design, luxury amenities, and a prestigious address positions The Perigon as a desirable option for those seeking a sophisticated lifestyle by the ocean.

As the Miami Beach real estate market continues to thrive, developments like The Perigon will play a crucial role in shaping the future of luxury living in the area. With strong presales and substantial financing backing, Mast Capital and Starwood Capital Group are well on their way to delivering a project that promises to elevate the standard of coastal living in South Florida.