Inexpensive Short-Term Rental Project In Overtown Scores $93M Construction Loan

PMG, Michael Simkins’ Lion Development Group and Alex Karakhanian’s Lndmrk Development secured a $92.5 million construction loan for their short-term-rental-friendly condominium project in Miami’s Overtown neighborhood.

The partners obtained financing from New York-based Maxim Capital Group, according to a news release. The loan will fund One West Twelve Residences (One W12), a 22-story development with 372 units planned at 105 Northwest Eleventh Terrace. Sales for the project launched last year, and the development is now 97 percent presold. The financing equates to roughly $249,000 per unit.

One W12 will feature a mix of studio and one-bedroom condominiums, along with a limited number of townhouse-style units ranging from one to three bedrooms. Cube 3, based in North Andover, Massachusetts, designed the project. Planned amenities include a fitness center, rooftop garden, pool, art installations and Vibe BBQ, a ground-floor restaurant by James Beard Foundation award winner Marcus Samuelsson.

Unit pricing began at $300,000, with developers targeting buyers seeking a more affordable entry point compared to other short-term-rental-friendly condo projects.

“What’s really attractive about the building is the price point,” Simkins told The Real Deal last year. “There is so much vibrancy in that neighborhood. People recognize there’s a revitalization happening in Overtown.”

Overtown, a historically Black neighborhood, has attracted significant investment in recent years. Terra CEO David Martin and the billionaire Más family are also developing a 1,215-unit residential project spanning 8.4 acres in the area, featuring market-rate, affordable and workforce housing, along with 15,000 square feet of retail space.

Source: The Real Deal