Williams Island developers Eddie and Jules Trump may feel like the luckiest condo developers on the block.
The brothers are one of the first condo developers to secure a large construction loan since the real estate market crashed. An affiliate of the brothers' Trump Group closed Monday on a $160 million loan to help build the luxury Mansions at Acqualina in Sunny Isles Beach.
"I have to think this is the first sizable construction loan in a long time," said Johnathan Robertson, managing director of the Miami-based company.
Parts of the proceeds of the loan backed by the land and purchase contracts paid off a $19 million land loan. The 2.03-acre site was purchased in a distressed deal for $3 million in January 2011, according to Miami-Dade County property records. Robertson did not disclose the total project value or the sellout value from buyers.
The 47-story project would be home to some of South Florida's most expensive condos, including a 16,000-square-foot penthouse priced at $55 million. Construction started in August, and the developer is preparing to pour the first floor of the lobby. The project should be completed in late 2014 or early 2015.
The syndicated loan was led by Regions Bank. The other participating lenders were SunTrust Bank, Mercantil Commercebank N.A., Sabadell United Bank N.A. and the Miami branch of Israel Discount Bank of New York.
"Our approach to working with clients is always to understand their business, what they want to do and then bring the right people to the table," Jeffrey Shulman said in a statement. He is executive vice president and South Florida market manager for Regions.
The Trumps are not related to New York-based celebrity developer Donald Trump.
Other banks wanted to join in the deal but had no luck.
"The construction loan was oversubscribed," Robertson said. "We had more commitments than [we needed] so people got refused. We only needed $160 million because of the use of deposits and equity."