Related Group Scores Construction Loan For Rental Tower On Miami River

 
Relief is on its way for Miami’s over-competitive rental market, and it cannot come soon enough. Just as we topped the list of the most competitive and least affordable rental markets in the nation, Related Group has garnered approval for a $106 million construction loan for a new rental tower in Brickell.

The new project is part of the larger 3-tower mixed-use development that is preparing to rise on a 4-acre lot at 444 Brickell Avenue. Still yet to be formally named, the rental portion of the project will have 506 apartments and 44-floors.

We do know that the first tower of the project is the 75-story Baccarat Residences, but it is unclear if the second and third towers will have the same branding. The rendering released features signage depicting “The One” on the entrance of the building, but this could be conceptual. Even if it is called The One, there is plenty of time for something like that to change as the building is constructed.

Speaking of construction timelines, we anticipate them to be as short as possible. Related has already bulldozed through red tape regarding Tequesta artifacts that were found on the build site, something that delayed the construction of Icon Brickell by years in the mid-aught’s.

With 444 Brickell, evidence of a possible prehistoric structure were reportedly found in 2021. A Related spokesperson told The Commercial Observer that construction is moving forward and the developer is in the end stages of securing construction financing for the Baccarat Residences tower.

Considering construction begins in early Q1 2023 as scheduled, we should see the first round of tenants moving into the luxury rental building in 2025. This allows for around 1 year of vertical construction (typical construction timelines budget 1 floor per week for vertical growth), and then roughly 1 year of interior and exterior finish-out. The third tower is expected to be announced once plans are in motion on the Baccarat tower and the rental tower.

Below is a diagram of how the three towers will be situated on the lot, maximizing the views and activating a currently under-used stretch of riverfront. The rental tower is on the far south portion of the build site, with Baccarat Residences on the riverfront side and the third tower facing Brickell Avenue.

Baccarat Residences Brickell Downtown Miami Site Key Plan

For those who are new to Miami and Brickell, the park across the street with circular designs was the mysterious prehistoric site that delayed the neighboring Icon Brickell project. The site with the most significant ruins (the circle itself) was given to the city and dedicated to the Tequesta Indians in memory of how our city came to be.

We are very excited to see this project come to fruition after years of discussion and need. While this project will relieve some stress from the luxury market, we also have more than 22,500 rental units in the pipeline across South Florida, with more in the planning phases.