Crescent Heights has secured a $238.4 million refinancing for Forma Miami, a 588-unit luxury apartment tower located in Edgewater, Miami. The 40-story building, completed last year at 2900 Biscayne Boulevard, includes 85,000 square feet of amenities and a 50,000-square-foot Whole Foods Market.
The refinancing was arranged through Freddie Mac’s Lease-up program. This program is designed for multifamily properties nearing stabilization but not yet fully stabilized. Typically, stabilization is defined as more than 90 percent of units leased. According to Michael Stepniewski of Walker & Dunlop, who represented Crescent Heights along with Aaron Appel and Jonathan Schwartz, Forma had not yet reached stabilization when the refinancing application was submitted but has since achieved it.
Russell Galbut, one of the leaders of Crescent Heights alongside Sonny Kahn and Bruce Menin, stated, “The tower is 97 percent leased.”
The building features studios and one- to three-bedroom apartments designed by Rockwell Group and Arquitectonica. Rents listed on Apartments.com range from $3,080 to $7,515 per month.
Crescent Heights also owns nine acres adjacent to Forma, with plans to develop the area into a city center.
Other recent refinancing deals in South Florida include Treo Group obtaining $132 million for its Vox I and II student housing campus in South Miami, Midtown Capital securing a $57 million bridge loan for the Astor Sound apartment complex in Lake Worth Beach, and Acre refinancing the Adela at MiMo Bay in Miami’s MiMo Biscayne Boulevard Historic District for $72 million.
The multifamily market in South Florida has seen a supply surplus following a construction surge. Data from CoStar Group shows that last year developers completed 18,600 apartments in the region, exceeding the 15,000 net new leases signed. This has resulted in lower rents and increased concessions.
Despite the current oversupply, developers continue to launch new projects, anticipating that demand will recover by the time these buildings are completed in the coming years. Oak Row Equities is developing the 324-unit 2900 Terrace in Edgewater, while Miami Design District Associates, which includes Dacra, Hunter Pasteur, and The Forbes Company, secured a $125 million construction loan in June for the 107-unit Cassi apartment project in the Miami Design District.
