North Development has achieved a significant milestone by securing $220 million in combined C-PACE and mortgage construction financing for its new luxury apartment community, Domus Brickell Center, in Miami’s Brickell neighborhood. This substantial funding, the largest ground-up C-PACE construction loan in South Florida to date, will support the development of a 579-unit, 35-story building.
Key Takeaways
- North Development secured $220 million in C-PACE and mortgage construction financing for Domus Brickell Center.
- The financing is the largest ground-up C-PACE construction loan in South Florida’s history.
- Domus Brickell Center will feature 579 luxury apartment units and is slated for completion in 2028.
- The project emphasizes energy efficiency and natural disaster resiliency, aiming to meet Florida Green Building Coalition standards.
Project Details and Financing Structure
Bayview PACE, a C-PACE financing specialist, structured approximately $180 million of the financing, with Core Capital from Peru providing an additional $40 million. Lotus Capital Partners acted as the investment bank, arranging and structuring the deal. This financing enables North Development to integrate robust energy-efficient and resilient features into the Domus Brickell Center project.
The development, located at 1034 SW 2nd Ave, broke ground recently and is expected to be completed in 2028. The 35-story community will offer a mix of studio, one-bedroom, and two-bedroom apartments. Designed by Studio Mc+G Architecture with interiors by Urban Robot Associates, the residences will be delivered fully finished and furnished, boasting hard flooring, private balconies, and kitchens equipped with high-end appliances.
Energy Efficiency and Resiliency Features
Domus Brickell Center is designed to meet Florida Green Building Coalition standards. Key features include UV-filtered water, purified air in common areas, and a facade and glazing system engineered to exceed hurricane resiliency codes. These elements underscore a commitment to sustainability and occupant safety.
The Rise of C-PACE Financing
Commercial Property-Assessed Clean Energy (C-PACE) is emerging as a significant housing finance tool. Annie Hill, senior vice president of Bayview PACE, highlighted that C-PACE offers an alternative funding source for building improvements at a lower cost than typical mezzanine debt. Most new multifamily projects or major renovations that meet modern energy codes are eligible for C-PACE financing.
Globally, C-PACE transactions have surpassed $10 billion across various real estate product types. This financing mechanism is increasingly used to fund energy efficiency, water conservation, and resiliency upgrades. C-PACE can also help fill funding gaps that arise during project development, providing crucial capital when original budgets are stretched.