ABP Capital provided an $11,000,000 multifamily acquisition loan in Miami, FL, for the purchase of a 0.83-acre waterfront apartment property on Biscayne Bay. The site has two buildings with 19 units and about 13,510 square feet. Zoning allows multifamily development by right, and the sponsor plans a boutique luxury redevelopment.

The loan carries a 24-month, interest-only term with a six-month extension option. The sponsor contributed significant equity to the purchase.

Until redevelopment starts, the sponsor will keep operating the apartments while working through design and permitting. Rental income will fall as tenants move out, and the loan will be repaid from a construction loan rather than from the property’s cash flow. Many lenders pass on that profile. ABP Capital built the loan around it. Rents run through a lender-controlled account and go to debt service first. An interest reserve covers payments as the buildings empty out, and the extension option gives the sponsor time to close the construction loan.

Multifamily-zoned lots with direct frontage on Biscayne Bay rarely come to market, and newer low-density waterfront buildings in Miami sell at a premium to older stock. The business plan depends on that premium.

ABP Capital provides acquisition, bridge, and construction loans nationwide and previously financed a luxury oceanfront condominium acquisition in Miami. Borrowers and brokers with a multifamily or redevelopment deal, in South Florida or elsewhere, can contact our origination team.