Redwood and Winston secure $47 million loan from Opa-locka Rentals
Redwood National Properties and Winston Capital Partners have secured a $46.6 million bridge loan for their new The Mirage at Sailboat Cove townhouse rental complex in Opa-locka.
Redwood National, a wholly owned subsidiary of Miami-based BAS Holdings Investments, and Aventura-based Winston Capital, developed the majority of the resort at 14301 Northwest 17 Path.
The City National Bank of Florida and Pensam Capital issued the five-year bridge loan which was used to repay an $18 million construction loan, according to a press release from Redwood and Winston.
The Mirage at Sailboat Cove around Lake Mitchell has 171 units, although 59 were built by previous developers, according to David Burstyn, CEO of Winston Capital.
Redwood and Winston built the remaining 112 units in 23 buildings, completing construction last year. They also purchased 20 of the previously developed units, Brian Sidman, founder and director of BAS Holdings, told The Real Deal. The property is fully rented.
The bridging loan is for Redwood and Winston’s portion of the property and allows developers to purchase another 10 of the previously built units, Burstyn said.
Although Mirage was not developed with government grants, nor restricted by deed to provide low-income or affordable housing, it accepts households using rental vouchers, Burstyn said. It also offers units at market rents.
Apartments.com lists townhouse rents at $2,925 per month.
Each two-story, four-bedroom Mirage townhouse is approximately 1,550 square feet, according to the release. The units each have four and a half baths.
“The working single parent who has kids, maybe the grandma is in the house – those are the families with young kids that we welcome,” Burstyn said.
Opa-locka, a town in northern Miami-Dade County near Hialeah, is a suburban residential community and also has industrial real estate areas.
The city has long been “underserved” in terms of new residential construction, Sidman said in the statement.
Many developers have focused on high-end, mark-to-market multi-family projects, leaving South Florida struggling with an affordability crisis. The problem is now exacerbated by an influx of out-of-state residents, fueling demand for apartments and driving up rents.
Miami saw the highest rent increases, nationally, at 38% in 2021, according to an annual report by Zumper.