Terra-Led JV Lands $507M Construction Loan for 1250 West Avenue in Miami Beach
TYKO Capital is funding a 28-story South Beach condo tower before a single unit has been sold.
A joint venture led by Terra has closed a $507 million construction loan for 1250 West Avenue, a planned 28-story condo tower on the western waterfront of South Beach facing Biscayne Bay. Commercial Observer and Multi-Housing News reported the financing on Oct. 8 and 9.
The lender is TYKO Capital, led by Adi Chugh. Commercial Observer reports that TYKO's debt platform is backed by Elliott Management.
The team
Terra, the Miami developer led by David Martin, heads the partnership. The partners are:
RG Development Group, led by Rafi Gibly
GV Development, the firm of Gianluca Vacchi
LORE Development Group, a Miami partnership of Leste Group and the Brazilian fund Opportunity Fundo de Investimento Imobiliário
The tower
The plan calls for a 330-foot, 28-story building with 106 residences that average about 3,500 square feet. Multi-Housing News reports two penthouses with private rooftop pools and 2,685 square feet of ground-floor retail. ODP Architecture and Design is the architect of record.
Amenities include rooftop pools, underground parking, a padel court, spa and wellness spaces, a private lounge, and a juice bar and cafe.
The tower replaces a 15-story, 238-unit condo building that was completed in 1964. The new building will have 106 homes, fewer than half the old count, but much larger ones. The loan comes to about $4.8 million of debt per residence.
Public improvements
Under the overlay zoning agreement the city approved, the developers will improve the Baywalk along the property to widen public waterfront access. Commercial Observer reports that the team also bought and demolished the Bikini Hostel across the street, and plans a public park on that site.
Why it matters
Presales have not started. Sales are expected to begin in 2027. That is unusual. Commercial Observer notes that construction lenders on South Florida luxury condos typically require a certain level of presales before they fund.
Private credit is filling that gap. Funds like TYKO are writing nine-figure checks on projects that banks would want more presales behind. Lenders like this can move faster and take on more risk than banks, usually at a higher price.
Terra has done this before. It completed Five Park, a 48-story condo tower, in 2024 with a $345 million construction loan. It is also building an 800-room hotel next to the Miami Beach Convention Center, financed with a $392 million TYKO loan.
What's unclear
Reports differ on the 2025 purchase of the site. Some coverage says Terra bought it, while other reports describe a different developer buying the site and later leaving the project. Sellout value, pricing per square foot, the completion date and the loan's rate and maturity have not been disclosed.
The question
Smart bet on South Beach, or too much condo risk? Tell us on Instagram at @commercial_real_estate.
Sources: Commercial Observer, Multi-Housing News, Connect CRE. Rendering via Connect CRE, credited to Terra Group.
Not investment advice.
