Fortune, KAR Properties Land $817M Faena Miami River Loan

Fortune International Group and KAR Properties, Alan Faena’s partners on a twin-tower condominium project facing the Miami River, have closed an $817 million construction loan from Tyko Capital, the lending platform led by Adi Chugh and backed by Elliott Management. Walker & Dunlop arranged the financing for the Faena Residences development at 24 Southwest Fourth Street in downtown Miami, Commercial Observer reported Oct. 28.

Why it matters

Commercial Observer framed the loan as Florida’s largest construction loan on record, surpassing the $772 million Stephen Ross secured for two Class A office towers in West Palm Beach. Other outlets have pointed to a different deal, the roughly $668 million Waldorf Astoria Miami construction loan, as the prior benchmark, so the “largest ever” claim here reflects Commercial Observer’s framing rather than an undisputed industry figure. Separately, this is Fortune’s second major construction financing with Tyko inside a month: the firm and partner Chateau Group closed a $463 million Tyko-backed loan in late October for the St. Regis Residences Sunny Isles Beach, a distinct tower on a different site. The Faena deal is a legitimate follow-up financing by the same developer, not a repeat of that earlier story.

The numbers

The $817 million loan funds two 68-story towers with 217 condominium units apiece on the Faena Residences site along the Miami River. It tops the prior $772 million West Palm Beach office loan by about $45 million, and lands roughly a month after Fortune’s $463 million St. Regis Sunny Isles financing closed.

What’s next

With construction financing in place, Fortune and KAR are positioned to move the Faena towers toward vertical construction on the river-facing site. Watch for permit filings and a construction start date, along with how presales track against the project’s luxury pricing given the record-size debt load now attached to it.

Explore more South Florida development and capital activity as the market tracks this cycle’s largest construction loans.