Cottonwood provides $50M mezzanine to finish Oasis tower

Cottonwood Group, the Los Angeles lender, is providing $50 million of mezzanine financing for the final condo tower at Oasis, a mixed-use project in Hallandale Beach, Fla., Commercial Observer reported Wednesday. The loan is subordinate to the $112 million construction facility that S3 Capital made to developer Giuseppe Iadisernia last year. WD Capital Group, led by Emile Schachter, brokered the mezzanine piece.

Oasis occupies 10 acres about a mile west of the beach. The final phase is the tower at 1000 East Hallandale Beach Boulevard, with prices ranging from $580,000 to $3.5 million. Construction is slated to wrap up next year. The first Oasis tower, also 250 units, moved into partial occupancy last month, with a temporary certificate covering through the 12th floor. The building is 25 stories. The commercial component, 35,000 square feet of office and 60,000 square feet of retail, finished in 2024.

Hallandale has moved upmarket since the pandemic drew northerners to Florida. Witkoff and PPG Development secured a $273 million facility for Shell Bay, a condo-and-hotel project on the same corridor, in 2024. The corridor has also produced lender disputes. Monroe Capital sued Ari Pearl and BH3's principals in March over a $70 million loan tied to Hallandale Beach Residences. The developer stopped paying in February, The Real Deal reported.

Cottonwood's loan ranks behind S3's construction facility, so if sales fall short, the mezzanine lender takes the first hit. Cottonwood has not disclosed how many Oasis units are under contract. That number will decide whether this financing structure is repeated on other condo towers.