Terra-led partnership secures $507M Tyko construction loan for South Beach condo tower

A Terra-led partnership has secured a $507 million construction loan from Tyko Capital for a 28-story, 106-unit condo tower at 1250 West Avenue on South Beach's Biscayne Bay waterfront. Commercial Observer reported the deal on Oct. 8.

Pre-sales are scheduled to start next year, a sequence Commercial Observer describes as unusual for a South Florida luxury condo.

Tyko's debt platform is backed by Elliott Management. "Miami Beach continues to be one of the most supply-constrained luxury markets in the country, and opportunities to build on the bay at this scale are rare," Tyko's Adi Chugh said in a statement.

The tower replaces a 15-story condo building completed in 1964, which Terra, led by David Martin, bought out of 238 units for $120 million last year, The Real Deal reported. To win approval for a 330-foot tower, the developers also acquired and demolished the Bikini Hostel across the street and plan a public park there.

The partners include GV Development, the firm of Gianluca Vacchi; LORE Development Group, the Miami partnership between Leste Group and Brazil's Opportunity Fundo de Investimento Imobiliário; and Rafi Gibly's RG Development Group. The project has no brand attached and will include rooftop pools, an underground garage, a padel court and ground-floor retail.

For Tyko, this is a second loan for the same sponsor: Commercial Observer reports the lender also provided $392 million for Terra's 800-room hotel next to the convention center. Terra completed Five Park, a 48-story condo tower near the MacArthur Causeway entrance, in 2024.