Two Roads Development has secured $150 million in financing to acquire an existing condominium building in the Edgewater neighborhood of Miami, clearing the way for an ultra-luxury residential development. The financing package includes a $45 million mezzanine loan from Lionheart Management LLC, the asset management affiliate of Fisher Brothers, and a $105 million senior mortgage from Bank OZK.

The developer plans to demolish the existing Biscayne 21, a 191-unit condo building constructed in the 1960s, to make way for a multi-tower luxury development on the 3.5-acre site at 2121 N. Bayshore Drive, facing Biscayne Bay. Two Roads will work with architects from Arquitectonica to design the property, which will include a mix of luxury condominiums and signature-branded residences.

Edgewater: A Sweet Spot for Investment

The redevelopment of Biscayne 21 will be the Miami-based developer’s third condo project in Edgewater, following Biscayne Beach, a 51-story property completed in 2016, and Elysee, a 57-story development delivered last year.

Positive demographic trends are fueling the need for new housing and luxury developments, and Edgewater has benefited from this trend. What once was a low-rise bayfront neighborhood is undergoing a high-rise transformation, a Commercial Observer article pointed out.

Thanks to its convenient location, providing access to Biscayne Bay and downtown Miami, the Edgewater neighborhood has become a sweet spot for luxury developments in recent years, as areas such as Brickell and downtown are nearly built out.