Bentley condo tower with car elevator lands US$630 million loan

[NEW YORK] Dezer Development secured a US$630 million construction loan for a Bentley Motors-branded condo tower in Sunny Isles Beach, Florida.

Madison Realty Capital provided the financing for the building at 18401 Collins Ave, which has sold more than half of its units, including two penthouses that were each listed at US$37.5 million, according to a statement on Wednesday (Nov 5).

The 61-storey luxury tower will have more than 200 condos starting at US$5.8 million. The building also includes a car elevator, called the “Dezervator”, and a three-to-four car garage with each condo, except for the penthouse units which will include space for seven vehicles.

The tower, which is set to be ready to open in 2028, is Bentley’s first branded residential tower and has cost nearly US$1 billion to build, according to Gil Dezer, president of Dezer Development.

Branded residential projects have boomed in recent years, with car companies and gourmet restaurant brands teaming up with developers to build their own residential towers. But the rush to build those properties has made competition stiffer. There’s more than 80 branded residential projects, including both those completed and projected, to choose from in South Florida alone, according to real estate brokerage Savills.

While some have speculated whether branded residences will maintain their appeal, Dezer remained bullish on the trend. In 2016, the firm helped create the Porsche Design Tower and is currently partnering with the Related Group on the Rosewood Residences Hillsboro Beach, which is under construction.

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Dezer said that most of the buyers in the Bentley residences are Americans from other states, paying deposits in all cash.

“There’s a fine line in branded residences in making them a kitschy concept,” Dezer said in an interview, adding the firm has been developing branded real estate since 2001, starting with now US President Donald Trump. “Branded residences might get watered down by developers who aren’t doing it right. But we understand how to incorporate the brand into the building and not make it gimmicky.” BLOOMBERG