Real estate developer Shahab Karmely has successfully paid off a $128 million condo inventory loan for 2000 Ocean, an exclusive residential tower located in Hallandale Beach. Karmely’s company, KAR Properties, secured this financing in early 2022 to cover the carrying costs of unsold units in the 38-story, 64-unit oceanfront building, which was completed in December 2021. The loan was provided by New York-based Madison Realty Capital, led by Josh Zegen. Typically, developers utilize condo inventory loans to manage costs associated with unsold units and to retire existing debt, including construction loans. In this case, Madison’s condo inventory loan replaced debt issued by Apollo Commercial Real Estate in 2018.
According to Karmely, approximately 70 percent of the units in the Hallandale Beach building have been sold, leaving around 19 units still available. Property records indicate that 38 units have been sold, accounting for nearly 60 percent of the building, although it’s worth noting that closings may take some time to be officially recorded with the county. Madison Realty Capital chose not to provide a comment on the matter.
Karmely mentioned that he has adjusted unit prices due to inflation. Edgardo Defortuna’s Fortune Development Sales has been overseeing sales and marketing efforts for the project. The building was designed by Enrique Norten of TEN Arquitectos, in collaboration with Kobi Karp Architecture & Interior Design, and features interiors by the Italian firm Minotti. Amenities include two pools with cabanas, a spa, cafe, library, theater, and entertainment room.
Back in 2014, the developer acquired the site at 2000 South Ocean Drive for approximately $34 million. Suffolk Construction filed a lawsuit against the developer last year, seeking at least $16 million in damages related to allegedly unpaid work at 2000 Ocean. The lawsuit is still ongoing.
Karmely and Defortuna have maintained a successful partnership on various projects. In 2021, their respective firms jointly acquired a selection of unsold condos at Brickell City Centre’s Rise and Reach towers. These condo towers were completed by Swire Properties in 2016. Last year, they formed a joint venture to develop KAR’s site along the Miami River, where Karmely’s company had plans for a luxury condominium called One River Point. New details about this project are expected to be announced soon, according to Karmely.
“For over 15 years, US Asset Loans have been providing funding to Real Estate investors”
Reach out today at [email protected]
