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Property Markets Group (PMG), a New York City-based national development firm, and Greybrook, a private equity firm in Toronto, have secured a $226 million construction loan to commence phase two of the Society Las Olas mixed-use apartment complex in downtown Fort Lauderdale, Fla., Commercial Observer can report.
The project is scheduled to open in Fall 2025.
Financing was provided by Related Fund Management, a multistrategy real estate investor with more than $11 billion under management, and Lubert-Adler, a real estate investment firm that has raised $10 billion in equity and has invested in $25 billion in real estate since its founding in 1997. The loan is a three-year term with extension options, according to sources close to the deal.
PMG’s capital markets team, led by Andrew Warman, Jon Blank and Paton Marion, quarterbacked the financing. PMG worked closely with attorneys at Kramer Levin Naftalis & Frankel, who represented the development firm on the transaction.
“The redevelopment of the Riverfront district in downtown Fort Lauderdale has been a beloved effort by our team,” said PMG managing partner Ryan Shear in a statement. “Downtown Fort Lauderdale is an immensely desirable destination, and we are confident this second tower will meet strong demand while extending the impact of Society Las Olas as a landmark project for the city.”
Located at 140 SW Second Street, the second phase of Society Las Olas follows the completion of the first phase, a 639-unit, 34-story luxury residential tower that opened May 2020. The towers include a pool deck, a multi-level coworking lab, and a lobby barber shop and salon.
The first phase of Society Las Olas was purchased this year by an entity tied to former WeWork (WE) CEO Adam Neumann. The Wall Street Journal first reported in January that Neumann purchased the entire residential complex, while Commercial Observer reported in February that Neumann paid $17 million for the entire 16,500-square-foot retail space on the ground floor of the recently completed building.
The second phase of Society Las Olas will feature 563 rentals and 1,625 square feet of retail. The two apartment complexes promote the “Society Living” brand launched by PMG in 2019, which aims to create reasonably priced rental communities with shared spaces, smart technology, inclusivity and some co-living arrangements. Society Las Olas Phase Two is to include a mix of studio- to three-bedroom units as well as “rent-by-bedroom” co-living spaces.
Other Society Living properties from PMG are currently under development in Nashville, Orlando, Brooklyn, Atlanta and Nashville, among multiple markets.
PMG carries a portfolio of more than 8,500 rental units and 16 million square feet of development. The firm is active across Florida and is currently co-developing the Waldorf Astoria Hotel & Residences and The Elser Hotel & Residences in Miami; as well as the 16-unit Sage Longboat Key Residences along the Gulf of Mexico on the Florida’s west coast, and One Park Sarasota, a luxury condominium in downtown Sarasota.
Greybrook has invested more than $2 billion in roughly 100 real estate projects across the U.S. and Canada.
Brian Pascus can be reached at bpascus@commercialobserver.com
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