Berkadia arranged a $13 million loan for the owners of The Lord Balfour Hotel on Ocean Drive, in Miami Beach, Florida. Senior Managing Director Charles Foschini, Managing Director Christopher Apone and Analyst Robert Iudice of Berkadia’s South Florida office secured the loan on behalf of Eidico, an Argentinean real estate developer specializing in hospitality.
The refinancing will be used in part to pay off the original loan and a construction loan for a new wing of the hotel on an adjacent lot, which includes 17 guest rooms, a rooftop terrace with plunge pool and Jacuzzi, a gym and business center, and a 40-seat restaurant called Salt Kitchen and Lounge.
Mercantil Bank provided the loan, with a 24-month term and one 36-month extension option.
“Though a small deal for our team, we had numerous issues to work through to get this loan closed,” said Foschini. “The foreign sponsorship, the lack of operational history and the difficulties of getting a certificate of occupancy in Miami Beach contributed to the challenges of this assignment. In the end, the exceptional Ocean Drive location and low loan-to-value made for a great loan for our banking relationship.”
Located at 350 Ocean Drive in the prestigious “South of Fifth” neighborhood of Miami Beach, The Lord Balfour Hotel is an 81-room, full-service boutique hotel built in the Art Deco style during the 1940s. Eidico purchased the property in 2010—its first acquisition in the United States—and remodeled the property in 2013 to compete with some of the newer/renovated properties in South Beach. The addition was completed in early 2018. The Lord Balfour is located steps from the iconic Ocean Drive, the center of the Miami Art Deco District, and Lummus Park.
About Berkadia®:
Berkadia, a joint venture of Berkshire Hathaway and Jefferies Financial Group, is a leader in the commercial real estate industry, offering a robust suite of services to our multifamily and commercial property clients. Through our integrated mortgage banking, investment sales and servicing platform, Berkadia delivers comprehensive real estate solutions for the entire life cycle of our clients’ assets. To learn more about Berkadia, please visit www.berkadia.com.
© 2018 Berkadia Proprietary Holding LLC. Berkadia® is a registered trademark of Berkadia Proprietary Holding LLC.
Commercial mortgage loan banking and servicing businesses are conducted exclusively by Berkadia Commercial Mortgage LLC and Berkadia Commercial Mortgage Inc.
Investment sales / real estate brokerage business is conducted exclusively by Berkadia Real Estate Advisors LLC and Berkadia Real Estate Advisors Inc.
This advertisement is not intended to solicit commercial mortgage loan brokerage business in Nevada.
In California, Berkadia Commercial Mortgage LLC conducts business under CA Finance Lender & Broker Lic. #988-0701, Berkadia Commercial Mortgage Inc. under CA Real Estate Broker Lic. #01874116, and Berkadia Real Estate Advisors Inc. under CA Real Estate Broker Lic. # 01931050.
For state licensing details for the above entities, visit: http://www.berkadia.com/legal/
