Terra Lands a $507 Million Construction Loan for a South Beach Bayfront Condo Before Selling a Unit

David Martin's Terra and its partners closed a $507 million construction loan from Tyko Capital for a planned 28-story, 106-unit condo tower at 1250 West Avenue, on the Biscayne Bay side of South Beach, The Real Deal and Commercial Observer reported October 8. Sales have not started and are expected to launch in 2027. Commercial Observer reports Tyko's debt platform is backed by Elliott Management, and The Real Deal has described Tyko as a joint venture between founder Adi Chugh and Elliott.

What is planned

• The team. Terra with Rafi Gibly's RG Development Group, Gianluca Vacchi's GV Development and LORE Development Group.
• The tower. 330 feet, with residences averaging nearly 3,500 square feet and two penthouses, each with a private rooftop pool. ODP Architecture and Design is the architect.
• Amenities. Pools at ground level and on the roof, a spa, a padel court, underground parking and ground-floor retail. No brand is attached.
• The public side. In exchange for the zoning that allows 330 feet, the developers must finish their stretch of the baywalk and turn the former Bikini Hostel across the street into a city park.

Why a loan before sales stands out

Commercial Observer called the timing unusual for a South Florida luxury condo, since lenders typically require a sales threshold before they fund construction, and The Real Deal said the loan came earlier than is typical here. Compare The Lincoln in Coconut Grove, which closed a $58 million loan after passing 40 percent sold, or Mandarin Oriental on Brickell Key, which broke ground with more than $1.7 billion sold. Bisnow put this loan among the largest construction loans ever made in South Florida.

“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.”Adi Chugh, Tyko Capital, in a statement reported by Commercial Observer

How the site was assembled

The tower replaces Bay Garden Manor, a 15-story, 238-unit condo built in 1964 on about 1.9 acres. In September 2025, Terra and Michael Stern's JDS Development bought it out for about $120 million, financed by a $98 million loan from Northwind Group. Northwind said at the time that the group held more than 95 percent of the units, enough to dissolve the condo association. JDS is no longer involved, a Terra spokesperson confirmed to Bisnow. The site was one of the properties tied to the Stern and Vacchi partnership, now the public dispute I covered in July, and Vacchi stays in this deal through GV Development.

Why the owners sold is the part I would study. The association president told The Real Deal, as Bisnow reported, that offers began after the 2021 Surfside collapse as the cost to maintain, repair and insure the building kept climbing. Dan Marinberg, the broker and attorney who negotiated for the owners, told Bisnow that 10 to 15 percent of owners refused at first, then changed their minds as condo and reserve fees piled up. Commercial Observer tied the wider rise in buyouts to post-Surfside inspection and reserve rules.

My read

This is a lender betting on scarcity, not on presales. The loan alone works out to about $4.8 million per residence, simple division, with no contracts signed. Pricing is not public, so I will not guess at a sellout. When this building prices in 2027, it becomes the new reference point for the bayfront side of South Beach. That matters most to owners of land and whole buildings on the bay. It says much less about a two-bedroom resale in an older tower down the street, which trades in a different market.

If you own in an older Miami Beach condo, Bay Garden Manor shows the full buyout path: years of owner talks, more than 95 percent of units sold to one buyer, then a new tower. Port Royale in North Beach is the same model in progress. Know your building's milestone inspection status, reserves and pending assessments, and talk to a Florida real estate attorney before you answer a developer's letter. Do not anchor to a per-unit figure from this deal either. The $120 million reportedly covered the hostel property too.

For buyers watching the 2027 launch, committed construction financing removes one risk I always flag on pre-construction, but only one. No prices, deposit schedule or delivery date are public. In May, The Real Deal also reported that the tower cannot be completed and occupied until Terra finishes the baywalk behind the site, with the Army Corps of Engineers and the state reviewing the plans. Get deposit and escrow terms in writing, and ask how that condition affects delivery, before you commit.