Bank of America Lends $43M on Miami Luxury Home Development

By Andrew Coen

Developer David Krakauer has nabbed $43 million of construction financing to develop five luxury homes on Miami’s waterfront, Commercial Observer has learned.

Bank of America provided the loan for Krakauer’s planned five-home project at 1000 Northeast 72nd Street in Miami’s Bayside Historic District. Prescott Holdings, an entity managed by Krakauer, acquired the 1.43-acre site from Wayne Abramsohn for $20 million, the South Florida Business Journal reported. 

The debt deal was structured with an 80 percent loan-to-cost ratio at a spread of 3.15 percent over the Secured Overnight Financing Rate, according to Meridian Capital Group, which arranged the loan with a team led by Eli Finkel and Rael Gervis.

“In a market where many lenders are hesitant to take on construction risk, we were able to match Prescott Estates with a capital source that not only offered aggressive terms but also understood the unique value of this project,” Finkel, senior vice president at Meridian, said in a statement. 

The vacant property was assembled for a combined $11.5 million in 2018, according to the South Florida Business Journal. The luxury home development is slated for completion in 18  months. 

Bank of America and Krakauer did not immediately return requests for comment.