Terra Secures $507 Million for Miami Beach Waterfront Tower Before Sales Launch
Terra and its development partners have secured $507 million in construction financing for a 28-story Miami Beach waterfront condominium, marking a significant financing milestone before residential sales have even launched.
Miami-based developer Terra and its partners have secured a $507 million construction loan for 1250 West Avenue, a planned luxury condominium development along the western waterfront of Miami Beach, marking a major financial milestone for the project before residential sales have begun.
The financing was provided by TYKO Capital, the real estate investment firm associated with Adi Chugh. The development partnership includes Terra, RG Development Group, GV Development and LORE Development.
The project will rise 28 stories above Biscayne Bay and introduce 106 condominium residences to a nearly two-acre waterfront site in South Beach. Sales are expected to launch in 2027.
While major condominium developments frequently rely on substantial presales before lenders commit construction capital, the 1250 West Avenue financing was arranged ahead of the project's sales launch.
That timing makes the transaction particularly noteworthy within South Florida's luxury residential development market.
A New Vision for Miami Beach's Western Waterfront
Located at 1250 West Avenue, the development will replace Bay Garden Manor, a 15-story condominium building dating to 1964.
The former property contained 238 residential units and was acquired through a condominium buyout completed in 2025.
The new development will substantially reduce the number of individual residences on the site while introducing a taller, more contemporary luxury building.
Plans call for a 28-story structure reaching approximately 330 feet, with expansive waterfront residences positioned to capture views of Biscayne Bay and the downtown Miami skyline.
ODP Architecture & Design is serving as architect of record.
The developers obtained the necessary development approvals in May 2026, establishing the foundation for the project's next phase.
Why the Financing Stands Out
The $507 million construction loan places 1250 West Avenue among South Florida's notable recent development financing transactions.
More importantly, it reflects an underwriting decision made before buyers have committed to the residences through a traditional presales campaign.
For lenders, condominium construction financing involves considerations ranging from development costs and project execution to expected sales prices, market demand and the financial strength of the development partnership.
A commitment of this size ahead of sales suggests that TYKO Capital sees a compelling opportunity in the project's location, development team and anticipated market positioning.
The financing should not be confused with the project's total development cost or an estimate of future sales revenue. Those figures measure different elements of the investment.
Still, the transaction provides an important example of how established development groups can structure major projects in an increasingly sophisticated South Florida financing environment.
Terra Builds on Its Miami Beach Portfolio
Led by CEO David Martin, Terra has developed an extensive portfolio across South Florida, spanning residential, mixed-use and commercial properties.
Its projects include Five Park, the 48-story Miami Beach residential tower completed in 2024 near the MacArthur Causeway.
The new development at 1250 West Avenue extends Terra's presence in Miami Beach while bringing together several investment and development partners.
For the broader market, the project illustrates the continuing evolution of Miami Beach's residential inventory. Aging waterfront condominium buildings are increasingly becoming the sites of new luxury developments, particularly where zoning, location and site conditions support substantial reinvestment.
Looking Ahead to 2027
With its construction financing secured, 1250 West Avenue enters its next development phase ahead of the anticipated sales launch in 2027.
The transaction also provides an early indication of the capital markets' continued interest in select waterfront properties, even as financing requirements remain an important consideration for large-scale condominium development.
For Terra and its partners, the immediate achievement is clear: securing more than half a billion dollars in construction financing before opening sales.
For Miami Beach, the project represents another significant investment in the long-term transformation of its waterfront residential landscape.
