A $507M Miami Condo Loan Closed With No Presales in 2026

Terra and its partners closed a $507 million construction loan from TYKO Capital for 1250 West Avenue in Miami Beach, a 28-story, 106-residence tower whose sales are not expected to launch until 2027, according to Florida YIMBY. At LuxuryDade I read the sequence as the actual news: the lender funded before a single contract printed, which inverts the presale threshold most Miami towers still have to clear. Ask who is funding your building before you ask who designed it.

Most Miami pre-construction buyers are taught to watch the sales counter. The percentage sold is the number the sales gallery quotes you, and it is the number I spend half my pre-construction buying process walkthrough explaining, because for years it was the gate a tower had to pass before a bank would fund it. In October 2026 a $507 million loan went the other way, and it is worth understanding why.

Tower cranes beside a Miami condominium tower under construction with its glass curtain wall going in — TYKO Capital provided $507 million of construction financing for the 106-residence tower at 1250 West Avenue, per Florida YIMBY. Photo via Pexels.

The $507 Million Loan That Did Not Wait for Buyers

The tower sits at 1250 West Avenue on the Biscayne Bay side of Miami Beach, where the Design Review Board approved a 28-story building earlier in 2026. The plan is 106 residences, ground-floor retail, underground parking, pools at street level and on the roof, a spa and a padel court, plus two penthouses with private rooftop pools. Terra is the lead developer, with RG Development Group, GV Development and LORE Development. TYKO Capital is the lender. Sales are expected to launch in 2027, which means the $507 million closed with the sales counter at zero.

"The thing I tell buyers is that a funded tower and a sold tower are two different kinds of safe. Funded means the concrete gets poured whatever the market does. Sold means somebody already agreed the prices are real. In 2026 you can get one without the other, and you need to know which one you are buying."Gerardo Gonzalez, Licensed Real Estate Agent at Compass

2026 South Florida condo project	Construction loan and lender	Sales when the loan closed	Source
1250 West Avenue, Miami Beach, 106 residences	$507 million, TYKO Capital	None open, launch expected 2027	Florida YIMBY, October 21, 2026
Twenty Sixth and 2nd, Wynwood, 233 residences	$126 million, Madison Realty Capital and Siguler Guff	73 percent sold, per the developer	PROFILEmiami, May 2026
Alhambra Parc, Coral Gables, 74 residences	$100 million, Benmark Capital	Not published	PROFILEmiami, June 8, 2026
Construction debt per residence	About $4.8 million, $541,000 and $1.35 million	Same order as the rows above	LuxuryDade calculation

The last row is the one I built myself, and it is the one that explains the first. Divide each loan by its unit count and 1250 West Avenue carries roughly $4.8 million of construction debt per residence, against about $1.35 million in Coral Gables and $541,000 in Wynwood. A lender writing $4.8 million per door is not underwriting a sales counter. It is underwriting bayfront land, a sponsor with a track record and a price band where 106 buyers worldwide is a small number.

Condominium towers lining the Biscayne Bay waterfront in Miami on a clear day — The 28-story tower rises on the Biscayne Bay side of Miami Beach with 106 residences, per Florida YIMBY. Photo via Pexels.

What a Presale Threshold Actually Is

A construction loan is the money that turns a rendering into a building. Before a lender wires it, the lender wants evidence the finished product will sell. The traditional evidence is contracts: a share of the units under contract with non-refundable deposits already posted. In Miami some lenders have wanted 50 to 70 percent of units sold before they would fund, which is why I tell clients that a tower's sales percentage is a financing fact first and a marketing fact second.

Wynwood shows the traditional version working. PMG and LNDMRK closed $126 million from Madison Realty Capital and Siguler Guff and broke ground on Twenty Sixth and 2nd in May 2026 with the project reported by the developer as 73 percent sold. Downtown, 14 ROC reached groundbreaking at 50 percent sold. In both cases the buyers funded the proof and the lender followed.

1250 West Avenue skipped that step entirely. So the useful question for a buyer is no longer whether a tower hit its presale number. It is which kind of capital is behind it, because the two kinds ask for completely different things.

Welcome to Wynwood mural painted on a brick warehouse facade in the Wynwood arts district of Miami — Twenty Sixth and 2nd in Wynwood closed $126 million in construction financing and broke ground on May 4, 2026 at 73 percent sold, per PROFILEmiami. Photo via Pexels.

Why Two Miami Towers Get Opposite Terms

Nothing in the three loans above was issued by a traditional construction bank with a published presale covenant. These are private credit and specialty lenders, and they price the sponsor and the dirt rather than the sales counter. That shift is why the same market can fund one tower at zero percent sold and another at 73 percent in the same calendar year.

1250 West Avenue, Miami Beach	Figure	Source
Stories and residences	28 stories, 106 residences	Florida YIMBY
Developers	Terra, RG Development Group, GV Development, LORE Development	Florida YIMBY
Lender and loan	TYKO Capital, $507 million	Florida YIMBY
Sales launch	Expected 2027	Florida YIMBY
Amenities named so far	Ground-level and rooftop pools, spa, padel court, retail	Florida YIMBY
Penthouses	2, each with a private rooftop pool	Florida YIMBY
Published prices	None as of October 27, 2026	LuxuryDade verification

Read the last row with the rest. Everything a buyer needs to judge construction risk is already public and dated. Everything a buyer needs to judge price is not, and will not be until 2027. That is the trade this financing structure hands you, and it is the opposite of the trade a 73-percent-sold Wynwood project hands you, where the pricing is proven and the building still has to get built.

Biscayne Bay mooring field full of sailboats with the Miami skyline and a causeway at twilight — The project includes proposed Baywalk improvements to widen public waterfront access, per Florida YIMBY. Photo via Pexels.

How I Read This for Buyers in 2026

My advice on any 2026 pre-construction contract is to stop treating the sales percentage as the safety number and start asking the financing questions directly. This is the order I work in with clients:

The Financing Questions I Ask Before a Deposit

Get the lender name and the loan amount in writing. Not "financing is secured." A name, a figure and a closing date you can check against the recorded mortgage, which is the method I lay out in my construction loan and groundbreaking checklist.
Ask what the loan required. If it required presales, the pricing has been tested by real buyers. If it did not, the pricing is still a hypothesis and you are an early data point in it.
Find out where your deposit sits. Escrow terms decide what happens to your money if the project slips, and they are negotiated before you ever see a floor plan.
Read the sponsor, not the brand. A lender funding before sales is betting on the developer's delivery record, so look at what that developer has actually completed in South Florida.
Underwrite the carry, not just the price. Taxes, insurance and reserves on a new Florida building are the numbers that surprise people, which is why I run clients through how to evaluate a building's financial health.

My honest read: a half-billion-dollar loan on an unsold Miami Beach tower is a bullish signal about capital and a neutral signal about prices, and buyers keep reading it as both. When the 1250 West Avenue gallery opens in 2027 the asking prices will be the first real test of what that lender believed. We log financing and construction milestones on our Development Watch tracker, and I will update this post when the first contracts print.

Frequently Asked Questions

How big was the 1250 West Avenue construction loan in 2026?

TYKO Capital provided $507 million in construction financing to Terra, RG Development Group, GV Development and LORE Development for the 28-story, 106-residence tower at 1250 West Avenue in Miami Beach, reported by Florida YIMBY on October 21, 2026. That works out to roughly $4.8 million of construction debt per residence.

How do I check whether my Miami tower closed its loan?

Ask the sales team in writing for the lender name, the loan amount and the closing date, then confirm it against the recorded mortgage in the county's official records and against trade coverage from Florida YIMBY or PROFILEmiami. If the answer is that financing is in process, treat the project as unfunded until the mortgage records.

What presale percentage do Miami condo lenders require in 2026?

There is no single threshold. Some Miami lenders want 50 to 70 percent of units under contract before funding, and in 2026 PMG and LNDMRK closed $126 million on a Wynwood project the developer reported as 73 percent sold. Private debt funds have underwritten towers with no open sales at all, so the number depends on the lender, not the market.

Is a condo loan with no presales safer or riskier for a buyer?

My view is that it is safer on construction risk and unproven on pricing risk. Funded construction means the tower is far less likely to stall for lack of deposits, which is the failure that actually traps buyer money. What it does not prove is that the asking prices clear, because no contracts have printed yet to test them.

When do 1250 West Avenue sales start, 2026 or 2027?

Sales are expected to launch in 2027, per Florida YIMBY's October 21, 2026 report, and no prices have been published. If you want a first look at the floor plans and the deposit schedule before the gallery opens, get your name on the list now and call me at (305) 964-8614.

Gerardo Gonzalez

Luxury Dade Group at Compass | Licensed Real Estate Agent | (305) 964-8614

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The $507 million loan, TYKO Capital as lender, the Terra-led development group, the 28 stories, the 106 residences, the amenity list and the 2027 sales launch were reported by Florida YIMBY on October 21, 2026. The $126 million Wynwood loan, its lenders and the 73 percent sold figure, and the $100 million Alhambra Parc loan from Benmark Capital dated June 8, 2026, were reported by PROFILEmiami. The construction debt per residence figures are LuxuryDade calculations from those loan amounts and unit counts. Last verified October 27, 2026. This article is for informational purposes only and does not constitute financial or investment advice.

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