Crescent Heights has secured a $238.4 million refinancing package for the Forma Miami apartment tower, a 40-story luxury building with 588 units located at 2900 Biscayne Boulevard in Edgewater, Miami. The company, led by Russell Galbut, Sonny Kahn, and Bruce Menin, completed the development last year.
The refinancing was arranged through Freddie Mac’s Lease-up program, which is designed for multifamily properties that are nearing but have not yet reached stabilization—defined as having more than 90 percent of units leased. Although Forma was not stabilized when it initially applied for the loan, it has since reached that status, with Russell Galbut stating that the tower is now 97 percent leased.
Aaron Appel, Jonathan Schwartz, and Michael Stepniewski of Walker & Dunlop represented Crescent Heights in the transaction. The building offers studios and one- to three-bedroom apartments with finishes comparable to condominiums. According to Apartments.com, rents at Forma range from $3,080 to $7,515 per month. Amenities include 85,000 square feet of indoor and outdoor spaces and a 50,000-square-foot Whole Foods Market.
Crescent Heights also owns nine acres of adjacent land where it plans further development into a city center.
The deal is part of ongoing lending activity in South Florida’s multifamily sector despite high interest rates. Other recent transactions include Treo Group obtaining $132 million for its Vox I and II student housing campus in South Miami; Midtown Capital securing a $57 million bridge loan for its Astor Sound apartment project in Lake Worth Beach; and Acre refinancing its Adela at MiMo Bay property with a $72 million loan.
South Florida’s multifamily market is currently experiencing an oversupply following a construction surge fueled by population growth during the pandemic. Developers completed a record 18,600 apartments last year—outpacing the 15,000 net new leases signed—according to CoStar Group data. This has resulted in lower rents and increased concessions for tenants.
Despite these conditions, developers continue to launch new projects with expectations that demand will recover as new buildings are completed over the next few years. Notable developments underway include Oak Row Equities’ 324-unit 2900 Terrace in Edgewater and Miami Design District Associates’ Cassi project—a 107-unit apartment building backed by a $125 million construction loan—in the Miami Design District.
