Hyde Resort & Residences ()
The Miami-based developer of the 40-story Hyde Resort & Residences Hollywood Beach said it’s well on its way to financing the $200 million project.
In the last five weeks, the Related Group has sold more than 65 percent of the property that will combine hotel rooms and condos while introducing the Hyde Hotels, Resorts & Residences brand to South Florida.
Related expects to wrap up pre-construction sales within six weeks and start converting reservations to contracts. With these deals in hand, it will have 60 percent to 70 percent of the project’s financing.
“We need to get the presales first, but there is no issue in terms of securing lending,” said Carlos Rosso, president of Related’s condominium division.
The company plans to borrow 30 percent to 40 percent of the project’s capital from a pool of lenders. Institutions such as Regions Bank and Greenstreet Capital LP have backed its developments in the last year, but Rosso said it’s too soon to identify a lender.
“If we have the presale requirement and buyers are putting down the deposits, then we’ll get the loan,” he said.
The Hyde property will have 407 units, including 367 condo hotel rooms and 40 condo units that owners could choose to occupy or add to the rental pool. It will occupy about 1 million square feet at 4111 S. Ocean Drive north of Hallandale Beach Boulevard.
Cohen, Freedman, Encinosa & Associates will be the architect, with Related and Fortune Development Sales partnering on development and sales. Construction is set to start in June and end in 2016.
The Hyde Hotels brand belongs to sbe, a Los Angeles-based hospitality and development company that partnered with Related on SLS Hotel & Residences Brickell, set to open in 2015.
The Hollywood hotel is one of two Hyde resorts in the works for South Florida.
Hyde Hotel & Residences Midtown Miami, a joint venture between the Related Group and New York-based Dezer Properties, will include 60 hotel rooms and 410 luxury condos. It’s set to open in 2016 at Midtown Avenue and 34th Street near Miami’s Design District. Miami-based Arquitectonica designed the building, which will feature restaurants, meeting space, spa, fitness center and pool with an expansive deck. David Rockwell will finish its interiors.
Related Realty and Fortune Development Sales have started accepting condominium reservations for that property, but Rosso said the partners are still analyzing funding options.
Meanwhile, he said Related and its affiliates have figured how to strategically acquire land to offer prime real estate at prices well below market rates.
Waterfront developers typically have to create luxurious condos to cover their costs, but Hyde’s beachfront Hollywood condos start at $450,000, or about $500 per square foot. Prices for the most expensive and larger four-bedroom condos reach $1.6 million.
“What’s very attractive for buyers is that they can find one- and two-bedroom units on the sand. This is something that is impossible in Sunny Isles, even in South Beach,” Rosso said. “What we discovered was a sort of niche market with smaller units and smaller prices per square foot.”
The buyers have come from Latin America, New York, Canada and Europe looking for investment property or second homes without fees and restrictions from homeowner associations.
“It’s a very diverse market,” Rosso said. The market “is maturing to attract people from all over the world.”