Post Road Group, a Stamford, Connecticut-based adviser and manager focused on alternative investments in private credit, private equity and real estate, has funded a $148 million construction loan for a multifamily property in Hialeah, Florida.
The financing, which originated on behalf of a partnership between New York-based investment firm Baron Property Group and Miami-based developer MG Developer, highlights an ongoing trend – alternative lenders are making more moves in construction financing as banks are less active in the space.
“This transaction aligns with Post Road’s investment strategy of financing strong developers seeking to establish cost-effective housing options in growth markets across the US and continues building our lending footprint in the Southeast,” said Jason Carney, partner of Post Road Group.
The planned asset, Metro Parc, will be a two-tower, mixed-use apartment property set to deliver 559 rental units, co-working facilities, a pool, gym and ground-level retail spaces. Construction will commence in December 2022 and is expected to complete in the second quarter of 2024.
Carney said the asset was well positioned to capture leasing demand in the burgeoning Hialeah area and that the firm is pleased to deliver a single-source, balance sheet financing solution.
MG Developer’s acquisition of Metro Parc in the fourth quarter of 2021 – its first multifamily project – kick-started the company’s multifamily rental buildings division and partnership with New York-based development company Baron Property Group.
Baron Property Group president and founder Matthew Baron said it was MG Developer’s reputation for elevating communities that attracted the manager to create a partnership.
“That is exactly what we look forward to continue doing as we grow deeper into the partnership,” said Baron.
He added that firm will focus on similar projects throughout South Florida, where it is also developing a luxury 48-residence scheme in Coral Gables called Gables Village.
HKS Real Estate Advisors procured the 30-month loan for the Metro Parc deal. Colliers International’s Structured Finance Group arranged the financing.