Related Group Secures $400M for Fisher Island Luxury Condos from Madison Realty

A joint venture led by Related Group has secured $400 million from Madison Realty Capital to develop a luxury condominium on Fisher Island, one of the wealthiest areas in the United States. This financing marks one of the largest construction mortgages in South Florida this year.

The Project

The loan will fund the Residences at Six Fisher Island, a 10-story building featuring 50 units located at 6 Fisher Island Drive. Construction is scheduled to start this summer, with completion expected in 2026. This development will be the first new property on Fisher Island since 2019, addressing the high demand for new residences in this exclusive community.

Development Details and Pre-Sales

The development team, including Israeli billionaire Teddy Sagi, BH Group, and Wanxiang America RE Group, acquired the 6.5-acre site for $123 million in 2022. The project, designed by Kobi Karp Architects, has already generated over $500 million in pre-sales, including a notable $150 million deal for two penthouses. The remaining units are priced at over $4,000 per square foot.

People Involved

Madison Realty Capital's $400 million construction mortgage replaces an earlier $85 million acquisition loan provided by the same lender. Josh Zegen, managing principal and co-founder of Madison Realty Capital, emphasized the limited new development on Fisher Island and the strong demand for new residences.

Berkadia South Florida arranged the nine-figure loan, with efforts led by Managing Director Scott Wadler, Vice President Michael Basinski, and senior associate Patrick Johnson, as well as Senior Managing Director Mitch Sinberg, and Managing Directors Brad Williamson and Matthew Robbins.

Broader Market Trends

Despite high interest rates slowing the debt market, South Florida's luxury condo market remains robust, driven by strong pre-sales. Recent significant loans include Mast Capital's $600 million for a Cipriani-branded development in Brickell and Bank OZK's $328 million and $172 million for projects in Brickell and North Miami, respectively.

The financing for the Residences at Six Fisher Island highlights continued investor confidence in South Florida's luxury real estate market, even amidst challenging economic conditions.