A Terra-led partnership has obtained a $507 million construction loan for a waterfront condo tower in Miami Beach, a financing event made notable by its timing: the loan was secured before the developers launched pre-sales. The financing from Adi Chugh's Tyko Capital covers the 28-story, 106-unit development at 1250 West Avenue, along South Beach's western waterfront facing Biscayne Bay. The transaction matters because it inverts a common South Florida luxury condo financing sequence, in which lenders typically require developments to hit a certain sales threshold before providing construction financing. Here, the capital arrived first, with pre-sales expected to start next year.
The project will replace a 15-story condo building constructed in 1964. Terra, led by David Martin, bought out the 238-unit building for $120 million last year, according to The Real Deal. Developer Michael Stern is no longer involved in the project. To receive approval for the 330-foot-tall tower from Miami Beach officials, the developers also acquired and demolished the Bikini Hostel across the street, with plans to turn that site into a public park. The planned luxury condo development, which does not have a brand attached, will include rooftop pools, an underground parking garage, a padel court, and ground-floor retail space.
The evidence for these details comes from a single full-text report published by Commercial Observer on October 8, 2026. The report identifies the development partners as GV Development, the firm of Italian influencer Gianluca Vacchi; LORE Development Group, the Miami-based partnership between Leste Group and Brazilian real estate fund Opportunity Fundo de Investimento Imobiliário; and Rafi Gibly's RG Development Group. The source also quotes Chugh directly: "Miami Beach continues to be one of the most supply-constrained luxury markets in the country, and opportunities to build on the bay at this scale are rare." Tyko Capital's debt platform is backed by Elliott Management, according to the report.
The financing adds to Terra's Miami Beach track record. The firm is building an 800-room hotel next door to the convention center after landing a $392 million loan, also from Tyko Capital. In 2024, Terra completed Five Park, a 48-story luxury condo tower near the entrance to the MacArthur Causeway. The repeat lending relationship between Terra and Tyko Capital suggests a level of lender confidence that may help explain the pre-sales timing, though the source does not state the loan's terms, interest rate, or any specific underwriting conditions. The absence of a brand attachment for the new tower also distinguishes it from many competing luxury condo projects in the market.
The transaction's broader implication is that well-capitalized lenders are willing to finance supply-constrained Miami Beach condo development ahead of buyer commitments, at least for established sponsors with a demonstrated delivery record. However, the evidence base is limited to one secondary source, and several material facts remain unknown: the loan's maturity, leverage ratio, recourse structure, and any pre-sales covenants that may still apply after closing. The source also does not provide unit pricing, projected sellout value, or construction timeline. What to watch is whether pre-sales launch next year as stated, and whether other Miami Beach luxury condo projects secure similar pre-sales-free construction financing, which would indicate a broader shift in lender behavior rather than a sponsor-specific exception.