The developer of a Whole Foods store planned in downtown Miami has obtained a $44.67 million construction loan.
Miami-based P&G Development Ltd. began construction of the 36,000-square-foot store and a 12-story parking garage above the store last year. The project on a 76,322-square-foot parcel at 200 SE Second St. is called Met 3 and could be completed later this year.
Ocean Bank was the lender. A portion of the loan went to pay off an existing mortgage made by Metropolitan Life Insurance Co. late last year, said attorney Joe Dewey, a partner with Holland & Knight in Miami. He and associate Melanie Fernandez represented Ocean Bank. MetLife lent P&G $38.55 million in November.
The new loan document took into account the possibility of a third party buying the 10th, 11th and 12th floors of the garage plus the air rights on top of the structure. P&G has development rights to build more than 400 units, he said. Another developer has the air rights under contract, said Dewey, who declined to name the prospective buyer.
“One of the challenges to structuring the transaction was to account for the possible future development of over 400 residential apartments that would be located above and adjacent to the Whole Foods and parking garage,” he said. “This included addressing the possible partial release of the air rights in the future and ensuring that all components of the project would function well.”
Miami attorneys Peter Lopez and David Messinger, partners at Stearns Weaver Miller Weissler Alhadeff & Sitterson in Miami, represented P&G.
Dewey said Lopez was instrumental in working with First American Title Insurance Co. to make sure Ocean Bank was provided with insurance for its first lien position even though construction was well under way.
The two principal bank officers involved were Eddie Diaz and Ralph Gonzalez-Jacobo, he said.