The lending arm of New York-based developer Silverstein Properties is putting $340 million into a luxury hotel and condo project in downtown Miami.
The construction loan for the Legacy Hotel & Residences, a project being built by Royal Palm Cos., comes amid rising demand for new condos and hotel rooms in South Florida.
The 50-floor tower is going up in the heart of the Miami Worldcenter, the second-largest urban development in the U.S. With Covid-related travel restrictions being relaxed, international buyers have returned to the Miami market, according to Dan Kodsi, chief executive officer of Royal Palm.
“We’ve seen a huge pickup now since the international buyers are allowed to come back into Miami,” he said in an interview. “We’re seeing activity from around the world. It’s not just South America.”
The project features 310 residences atop a 219-room hotel and a $100 million Blue Zones Medical and Wellbeing Center. There’s also the city’s first rooftop atrium and a Singapore-inspired cantilevered pool.
Silverstein Properties, known for redevelopment of the World Trade Center in New York, got into the lending business in recent years, raising funds to create Silverstein Capital Partners.
The operation is run as a separate private equity business and has been looking outside New York for investments. This is the first time it has made a loan in Florida, according to president Michael May.
“We just look for where we thought the best opportunity was,” he said in an interview.