$134M Funds Seagate Project Construction

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DELRAY BEACH, FL-A $134-million construction loan has been secured for the Seagate Hotel & Spa, the Seagate Residences and the Seagate Beach Club projects.

The project, being undertaken by locally based developer HHC Florida Inc., will be comprised of a 162-suite boutique hotel, 29 condominiums and a beach club. The lead lender of the loan is New York City-based CIBC World Markets Inc. The loan will pay for construction of all three components of the project. Construction of the condominiums has started, with construction of the hotel and beach club expected to begin shortly.

The loan was secured by locally based Dockerty Romer & Co. Even though the loan was initiated before the crisis in the capital markets, it posed some challenges, Shannon Rex, of Dockerty Romer & Co., tells GlobeSt.com. “We had to deal with the issues surrounding the subprime market but also condos aren’t the fair-haired boys of the market they used to be,” Rex says.

The Seagate Residences is located on an approximately two-acre site on the west side of State Road A1A. The Seagate Hotel & Spa is located on Atlantic Avenue, approximately three blocks west of the Atlantic Ocean. The two-story Seagate Beach Club will be located on the east side of State Road A1A across the street from the Seagate Residences. The condominiums, which are priced from $2 million, and the beach club are expected to be completed in January 2009. The hotel is expected to open about six months later, Rex says.