From left to right: Ricardo Vadia, Jon Paul Perez and Oscar Rodriguez with District 225
Developers of District 225, an Airbnb-branded condo project planned for downtown Miami, have secured construction financing.
Related Group, ROVR Development and BH Group received a $76 million loan from Madison Realty Capital, a New York-based lender, for the 37-story, 343-unit condominium building at 225 North Miami Avenue. District 225 has been fully pre-sold for months and construction is underway, ROVR’s Oscar Rodriguez said.
Unit prices ranged from $300,000 to $800,000 and from studios to two bedrooms. About half of the buyers come from Colombia, Mexico and Argentina.
Units will come fully furnished and finished, so buyers can easily rent them out, and Atlantic & Pacific will handle short-term rentals, which will be listed on Airbnb. Facilities will include indoor racquetball and basketball courts, a rock climbing wall and a rooftop pool.
Demand remained strong for condos offering short-term rental flexibility, prompting several developers to enter the market with new projects. PMG and Greybrook plan to soon launch sales of a recently completed short-term rental-friendly building in downtown Miami that was scheduled to be delivered for rental but will be sold as a condominium.
District 225 is expected to be completed in 2024, Rodriguez said.
According to Rodriguez, executives at Coral Gables-based ROVR, who both previously worked for Miami-based Related, identified the assembly and brought it to Related. The site is east of ROVR’s Grand Station apartments, which it developed in partnership with the Miami Parking Authority. (Retired Yankees shortstop Alex Rodriguez is an investor in the project). Related and ROVR are also the contractors for the College Station site, which they will also develop with the Miami Parking Authority.
Rodriguez said ROVR is looking to do more short-term rental-friendly condo projects in “urban settings” where he expects developments to succeed.
Related is also partnering with Merrimac Ventures to co-develop a short-term rental condo tower, called The Crosby, in nearby Miami Worldcenter.
Perhaps the most publicized development of this type to move this cycle forward is the twin-towered E11even Hotel & Residences, which E11even Partners and PMG are building. Units in the first 65-story building sold out within months, and sales are also strong for the second tower. A subsidiary of Starwood Property Trust provided a $148.5 million construction loan to developers earlier this year.
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