Miami River Condo Development Secures Record-Breaking Construction Loan

Fortune International Group and KAR Properties have secured an $817 million construction loan from Tyko Capital for Faena Residences Miami, a planned two-tower luxury condominium development at 24 SW 4th Street in Downtown Miami. The financing represents the largest construction loan reported in Florida history and will support development of the 1.8-acre waterfront property overlooking the Miami River, across from Brickell City Centre. The project will feature two 68-story residential towers with a combined 434 condominium units.

The financing was arranged by Walker & Dunlop on behalf of the development partners. Tyko Capital, backed by Elliott Management and led by Adi Chugh, provided the loan.

Major Financing Milestone for Miami Development

The $817 million financing exceeds the previous Florida construction loan record of $772 million, which was secured for two Class A office buildings in West Palm Beach developed by Stephen Ross.

The transaction also follows another substantial condominium financing involving Fortune International Group. Earlier this week, Fortune and Château Group obtained a $463 million loan for a residential tower at St. Regis Residences in Sunny Isles Beach.

Faena Residences Advances Toward Construction

Designed by Rafael Viñoly Architects, Faena Residences Miami will consist of two waterfront towers containing 217 residences each.

The development has recorded more than $500 million in condominium sales, including a penthouse purchased for $30 million, according to the project sponsors.

Construction is expected to begin in November 2026, with completion anticipated in 2030.

The property has a lengthy development history. KAR Properties acquired an interest in the site in 2013 and previously pursued a luxury condominium project that never advanced to construction.

Fortune International Group subsequently partnered with KAR Properties, with Edgardo Defortuna acquiring an interest in the property in a $58.8 million transaction in 2022.

In 2023, Bank OZK provided $38 million in financing for preliminary site work and marketing activities associated with the development.

Private Capital Continues to Finance Luxury Projects

The loan further expands Tyko Capital’s involvement in South Florida real estate development. The lender has financed several prominent projects in the region, including a Bentley-branded condominium development in Sunny Isles Beach and a convention center hotel in Miami Beach.

Walker & Dunlop’s financing team included Michael Stepniewski, Keith Kurland, Aaron Appel, Jonathan Schwartz, Adam Schwartz, Dustin Stolly, Sean Reimer and Sean Bastian.

The size of the Faena Residences financing highlights the distinction between well-capitalized, heavily presold luxury projects and developments that may face greater challenges obtaining construction debt. With more than $500 million in reported sales, the Miami River project demonstrates how substantial presale activity can support lenders’ willingness to commit significant capital.

The financing also represents another step in the continued development of the Miami River waterfront, where new residential construction is adding luxury housing inventory near Brickell and Downtown Miami.

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