Commercial Observer:

Naftali Group Lands $40M for Downtown Miami Resi Tower

January 22, 2025Read Full Article

Naftali Group has secured a $40 million construction loan to complete a residential high-rise in

Downtown Miami, the developer announced.

 

The C-PACE financing from Nuveen Green Capital will go toward JEM Private Residences, a 67-story

project at 1016 Northeast Second Avenue, a block south of Interstate 395, within the Miami

Worldcenter master development.

 

JEM Private Residences will house about 535 apartments on the bottom floors and 259 condo units on

floors 43 through 67. The development also will have commercial space on the ground floor and nearly

600 parking spots.

 

The project broke ground in April. Construction is expected to be completed in the fourth quarter of

2027. A representative for Naftali has not responded to a request for comment about the sales figures.

 

The C-PACE financing marks the third loan for JEM Private Residences. In 2022, the New York-based

developer secured a $33.6 million acquisition loan from CIT Bank, a division of First Citizens Bank, after

buying the 0.8-acre site for $40.5 million, according to property records.

 

In August, Naftali Group secured a $35 million pre-development loan from BHI, the U.S. division of

Israel’s Bank Hapoalim, The Real Deal reported.

 

With the new debt, Naftali Group was able to reduce the blended cost of capital, according to a

statement. The financing qualifies as a C-PACE loan, shorthand for Commercial Property Assessed Clean

Energy, a program available in certain states that incentivizes developers to make energy-efficient

upgrades.

 

In South Florida, besides JEM Private Residences, Naftali Group is developing a 45-story condor tower in

Fort Lauderdale, which launched sales last month.