Ocean Bank provided a $50 million construction loan for an apartment project in Boca Raton.
The Miami-based bank awarded the mortgage to TR Danburg Boca Holdings, managed by Miami developers James D. Tate and Sergio Rok, who have frequently partnered on deals. They recently acquired 14.1 acres at the southeast corner of Congress Avenue and Clint Moore Road in the Park at Broken Sound.
The land was previously owned by 6600 Congress Ltd., led by Boca Raton developer Jamie A. Danburg. He got it rezoned to allow for 282 residential units, a 5,500-square-foot clubhouse and 10,500 square feet of retail.
Tate and Rok said the apartments would be for the upscale luxury market. They buildings would be six and seven stories tall. They expect the project to open in 15 to 16 months.
Rok added that the retail portion could break ground within 12 months. The Ocean Bank loan applied only to the residential construction.
Tate said he likes the Boca Raton market because it has a high barrier to entry.
Recently, TR Danburg transferred the residential portion to TR Danburg Boca Holdings and the retail portion to Retail Boca Holdings for $10 each. The deeds explained that the buyer and seller entities shared beneficial ownership, so the full deed transfer taxes weren’t paid.
Danburg signed the deeds as the seller, but Tate and Rok signed the documents for the entities that bought the property. Tate and Rok said Danburg is a partner with them in the project and holds a partial equity interest.