Two Greenberg Traurig attorneys helped a developer land a $32 million loan to build the first new office building in Miami's Coconut Grove in nearly three decades.
Miami shareholders Laura Gangemi Vignola and Michael Lynott represented the Terra Group in securing funds for its Class A office project at 2860 Oak Ave.
Terra has partnered with Mayfair Real Estate Advisors to convert the 1980s-era parking garage at the site into 75,000 square feet of office space, street-level retail and public parking.
The legal duo helped arrange a construction loan from BB&T Bank, which will allow for an August groundbreaking.
Known as Mary Street, the office project is a novel commercial real estate venture in residential Coconut Grove.
"There wasn't anything particularly unusual regarding the loan transaction," Gangemi Vignola said. "The folks at Terra are very knowledgeable regarding the concerns and needs of lenders. They're able to anticipate their requirements, which makes our job as counsel much easier."
Gangemi Vignola and Lynott became involved as soon as the bank presented its commitment letter. She said the deal took only about a couple of months to close.
Greenberg Traurig has worked with Terra on several of its projects in the past, including its latest Grove at Grand Bay and Park Grove condominium developments in Coconut Grove.
Gangemi Vignola has also represented the developer on its Miami Beach ventures, a project in Doral and an expansive, mixed-use endeavor in Pembroke Pines.
Financing for new construction in South Florida has tightened up, especially for luxury condo towers, the lawyer said.
"It's not as easy to arrange financing as it was in 2015 or last year," Gangemi Vignola said.
But certain factors help make a lender more comfortable backing a project, such as the location and its unique characteristics. A well-known sponsor also helps.
"With that stricter lending environment, it's important to work with folks like Terra who are prominent developers with a proven track record," she said.
Coming in 2018
Berger Singerman also played a role in the transaction, aiding the development team in its effort to secure construction financing.
"As is typical in large-scale acquisitions throughout Florida, a coordination between the sponsor and limited partners was largely performed by their respective counsel," said Miami partner Marc Shuster, who led the efforts. "For the sponsor, that meant Greenberg led the real property-level efforts for the refinance, while Berger Singerman, who represented the limited partners, navigated the joint venture and limited partnership concerns which were in play."