Related Urban Development Group arranged $129 million in financing for Gallery Lummus Parc, a 257-unit transit-oriented development in Downtown Miami, Commercial Observer reported. Greystone Real Estate Capital is providing an $80 million construction loan, with a $60 million permanent mortgage structured as a tax-exempt loan through Freddie Mac.
What happened
The capital stack combines public and private sources alongside the senior construction debt from Greystone Real Estate Capital. Additional funding includes $27.1 million generated through the Low-Income Housing Tax Credit program, a $12.75 million State Apartment Incentive Loan from the Florida Housing Finance Corporation, a $5 million Documentary Surtax loan from Miami-Dade County, and a $3 million American Rescue Plan Act loan from the City of Miami. An entity affiliated with Related Group contributed $6.4 million in Opportunity Zone investment. Related Urban Development Group did not identify sources for the remaining $15 million in financing.
The project will rise 27 stories with a five-level garage on a 0.7-acre site at 101 Northwest North River Drive and 395 Northwest First Street. The property sits two blocks from the Government Center Metrorail and Metromover station, within Miami-Dade County's Rapid Transit Zone. More than 80 percent of the apartments will feature rents tied to household income, including 167 units for residents earning between 20 percent and 80 percent of the area median income, alongside 47 workforce units and 43 market-rate units. Construction begins this month and will take two years.
What it changes for a closing
For closing teams, assembling multi-layered capital structures involving municipal, state, and agency participants requires aligning competing compliance guidelines and intercreditor provisions. A closing that pairs an $80 million private construction loan with a future $60 million Freddie Mac tax-exempt permanent facility demands precise coordination across disbursement schedules, conversion milestones, and tax credit syndication covenants. Counsel and escrow officers must harmonize regulatory agreements from the Florida Housing Finance Corporation, Miami-Dade County surtax documentation, and federal American Rescue Plan Act requirements, establishing clear lien priorities and draw conditions across all public and private lenders.