A $507M construction loan is underwritten to a sell-out price no buyer has yet paid.
Tyko Capital, led by Adi Chugh, is lending $507M to a Terra-led group that includes GV Development, LORE Development Group and RG Development.
The tower has rooftop pools, underground parking, a padel court and ground-floor retail. No brand is attached.
Pre-sales have not started. Lenders typically require a sales threshold before funding, which is why the article calls this unusual.
The site was a 238-unit condo that Terra bought out for $120M in 2025. The partners also bought and demolished a hostel across the street for a public park.
The article does not disclose total cost, loan-to-cost or the equity behind the loan.
With no pre-sales, the loan rests on a sell-out price, not on contracts. At about $4.78M of loan per unit (derived), average net sales must exceed that figure before interest, costs and equity are repaid. The lender is a private debt platform, not a bank, which prices that risk differently. Ask what deposit schedule and sales pace the lender assumed.
Related coverage
Key Takeaways
- When the lender funds before the buyers, the sell-out price is the collateral.
- Units fall from 238 to 106, down 55% (derived), so the redevelopment trades density for a luxury price point
- The 2025 buyout equals about $1.13M of land cost per planned unit (derived)
- Total project cost, loan-to-cost and equity were not disclosed
Commercial Observer, Terra-Led JV Lands $507M Construction Loan for South Beach Condo Before Pre-Sales, Oct. 8, 2026
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