Kushner Companies Secures $115M Construction Loan for Premium Surfside Apartment Complex
The South Florida luxury real estate market continues its remarkable expansion as Kushner Companies successfully obtained a substantial $115 million construction loan to finance their ambitious 68-unit apartment development in the prestigious town of Surfside. This significant financial milestone underscores the robust confidence investors maintain in Miami's luxury residential sector, particularly as Miami was recently ranked the #2 housing market in the entire U.S. for 2025.
The financing arrangement, facilitated through Arbor Realty Trust's specialized lending division Arbor Realty SR, represents one of the largest construction loans secured in the Surfside market this year. This development joins a growing portfolio of high-end projects transforming the Collins Avenue corridor into South Florida's premier luxury residential destination.
Strategic Location Positioning in Surfside's Golden Corridor
Kushner's latest venture occupies a prime 2.9-acre parcel at 9300 Collins Avenue, strategically positioned within Surfside's coveted luxury development zone. The non-waterfront property benefits from proximity to several landmark developments, including the renowned Fendi Château Residences and the prestigious Four Seasons Hotel and Residences at the Surf Club.
The development's location capitalizes on Surfside's transformation into a luxury residential enclave, where the $1 million-and-up market recently achieved the milestone of average prices surpassing $1,000 per square foot. This positioning places Kushner's project at the epicenter of South Florida's most sought-after residential corridor.
The acquisition history reveals astute market timing, as Kushner initially secured the site through a $40 million distressed transaction from developer Shaya Boymelgreen in 2023. This strategic purchase involved collaboration with Boymelgreen's lender, Fuse Group, demonstrating Kushner's ability to identify and capitalize on market opportunities during challenging economic periods.
Comprehensive Development Specifications and Timeline
The planned three-story residential complex represents a carefully designed luxury living environment featuring 68 thoughtfully appointed units ranging from efficient studios to expansive four-bedroom residences. Construction commenced in mid-May 2025, with project completion anticipated by the end of 2026, positioning the development to capitalize on the projected market recovery.
The architectural design, crafted by renowned Chicago-based firm Palma, incorporates significant historical preservation elements. The building will showcase the restored facade from the original MiMo-style structure constructed in 1940, creating a unique blend of contemporary luxury amenities with preserved architectural heritage that distinguishes the property within Surfside's competitive landscape.
Interior amenities span an impressive 15,000 square feet, featuring world-class facilities including a comprehensive spa, state-of-the-art fitness center, private movie theater, recreational game room, and a sophisticated library equipped with modern work pods. These amenities reflect current luxury living trends that prioritize wellness, entertainment, and flexible work environments.
Premium Amenity Portfolio and Lifestyle Integration
The development's amenity strategy extends beyond traditional luxury offerings to encompass an additional 24,000 square feet of rooftop facilities, creating an elevated outdoor living experience. The expansive rooftop amenities include a resort-style swimming pool and dedicated yoga lawn, catering to residents' wellness and recreational preferences while maximizing the property's vertical space utilization.
This comprehensive amenity approach aligns with current luxury residential trends where properties with eco-friendly features and smart home technologies are increasingly sought after by discerning buyers. The development's emphasis on wellness-focused amenities positions it advantageously within the evolving luxury market landscape.
The project's amenity programming reflects extensive market research into contemporary luxury living preferences, incorporating spaces that facilitate both social interaction and private relaxation. This balanced approach addresses the diverse lifestyle needs of Surfside's affluent residential community while creating distinctive value propositions that differentiate the property from competing developments.
Market Context and Competitive Landscape Analysis
Kushner's Surfside development enters a remarkably dynamic luxury residential market characterized by sustained growth and robust investor confidence. Industry experts anticipate at least a 10% rise in sales, driven by demographic shifts, economic factors, and lifestyle changes that continue favoring South Florida's luxury residential sector.
The broader Surfside development landscape reveals intense activity, with multiple significant projects securing substantial construction financing throughout 2024 and 2025. Recent comparable transactions include Fort Partners' $110.7 million loan for Surf House and their $107.6 million financing for Seaway North at The Surf Club, indicating robust lender confidence in the market's fundamentals.
This development activity occurs within Miami's broader real estate renaissance, where single-family home prices have risen 167.3% from February 2015 to February 2025, increasing from $245,000 to $655,000. Such substantial appreciation demonstrates the market's underlying strength and validates investor confidence in long-term value creation.
Kushner Companies' Strategic Portfolio Expansion
The Surfside project represents Kushner Companies' inaugural development within the prestigious coastal community, marking a significant geographic expansion of their South Florida portfolio. Under the leadership of CEO Laurent Morali and President Nicole Kushner Meyer, the company has systematically expanded their regional presence through strategic acquisitions and developments across Miami's most desirable neighborhoods.
Kushner's diversified South Florida portfolio encompasses developments in Miami Gardens, Wynwood, Edgewater, and Fort Lauderdale, demonstrating comprehensive market coverage across varying price points and demographic segments. The December 2024 acquisition of the Hamilton apartment tower in Edgewater for $190 million exemplifies the company's aggressive expansion strategy and substantial capital deployment capabilities.
This geographic diversification strategy positions Kushner advantageously to capitalize on South Florida's multi-faceted luxury market, while the Surfside development specifically targets the ultra-high-end residential segment that continues demonstrating remarkable resilience and growth potential.
Key Insights and Market Perspectives
What makes Kushner's Surfside development unique in the current market?
The project distinguishes itself through the integration of historic MiMo architectural preservation with contemporary luxury amenities, creating a unique residential experience that honors Surfside's architectural heritage while delivering modern luxury living standards.
How does the $115 million financing compare to similar Surfside projects?
The financing amount positions this development among the largest construction loans in Surfside's recent history, comparable to Fort Partners' recent $110.7 million and $107.6 million loans for oceanfront projects, indicating strong lender confidence in non-waterfront luxury developments.
What market trends support this development's timing?
Miami's ranking as the #2 U.S. housing market for 2025, combined with luxury market price appreciation exceeding $1,000 per square foot and projected 10% sales increases, creates favorable conditions for luxury residential development completion by late 2026.
How does this project fit within Surfside's development evolution?
The development contributes to Surfside's transformation from a quiet coastal community to a luxury residential destination, joining prestigious developments like Fendi Château Residences and Four Seasons properties in creating a cohesive luxury corridor along Collins Avenue.
What financing trends does this transaction represent?
The successful securing of $115 million construction financing reflects continued lender confidence in South Florida luxury residential markets, despite broader economic uncertainties, indicating strong fundamentals supporting premium residential development projects.
Why is the 2026 completion timeline strategically advantageous?
The completion timeline positions the project to capitalize on anticipated mortgage rate declines potentially reaching 5% by late 2025, creating favorable conditions for buyer financing and market absorption during the critical sales and leasing phase.
