GMAC Commercial Mortgage Corporation and KeyBank Split $125 Million in Construction Financing for Miami's Downtown Dadeland.

MIAMI -- GMAC Commercial Mortgage Corporation (GMACCM) and KeyBank Real Estate Capital have each provided $62,500,000, for a total of $125,000,000 in financing for the Downtown Dadeland construction project in Miami.

Downtown Dadeland is a mixed-use development containing seven mid-rise buildings on a 7.43 acre site. The project includes 125,323 square feet of ground-floor retail and restaurant space, 416 residential condominiums on the upper floors, and a two-level, below-grade, parking garage with 900 parking spaces. The condominiums are currently 84 percent pre-sold, and major tenants in the retail and restaurant space include Pier 1 Imports, Cargokids, Chili's, Romano's Macaroni Grill, Men's Wearhouse and The Bombay Company. The development also includes a recreation facility for residents that will contain a swimming pool, outdoor cabana area and an air-conditioned exercise center.

The arrangement, whereby GMACCM and KeyBank each provided a commitment for half of the loan amount, was beneficial to the borrower. Loans of this size routinely require borrowers to work with a four- or five-bank syndicate. The ability to close a $125 million loan using only two lenders contributed to time and cost savings for the borrower.

Marc Yavinsky, vice president - branch manager of the GMACCM Boca Raton loan origination office arranged the transaction through GMACCM's Construction Lending Division and KeyBank. Downtown Dadeland Residential Condominiums, LLC, a joint venture between Gulfside Development Company, Inc. and The Canyon-Johnson Urban Fund, L.P. received the funding. The Canyon-Johnson Urban Fund is a joint venture between Canyon Capital Realty Advisors and former Los Angeles Lakers star Earvin "Magic" Johnson's Johnson Development Corporation.

Yavinsky commented, "With the Atlantic Ocean to the east and the Everglades to the west, there is a shortage of developable land in South Florida. The Downtown Dadeland project was revolutionary in that the developer was able to eliminate the need to allocate a portion of the site for parking by building a two-level, underground parking garage under the entire site. In addition to conserving space, having the parking garage be underground contributes to the development's small town, neighborhood feel."

Complicating the plan to build the parking garage underground was the fact that the water table is only seven to eight feet below the surface. Building the garage requires digging to a depth of 39 feet. The developer dealt with the high water table by employing a foundation detail that is used worldwide, but has yet to catch on in Florida. This innovative approach, which allows developers to maximize the value of their project by utilizing the entire surface area for building while still meeting the parking requirements, could change the way developers and builders design projects in South Florida.

"Finding the right construction lender for this project was a very important factor for us," notes Stefan Johansson, one of the principals of Gulfside Development. "GMAC Commercial Mortgage and KeyBank took a very proactive approach in dealing with the unusual engineering components of this job. They had a very broad-based knowledge and understanding of the structural systems and engineering systems we have chosen in building this project. Having an educated and sophisticated lender was extremely important to us in bringing a pioneering project like Downtown Dadeland to fruition, and the partnership between KeyBank and GMACCM has certainly responded to this challenge."

"The strength of the partnership between GMACCM and Key was an important part of this successful transaction," according to Chuck Ernst, vice president, KeyBank Real Estate Capital. "Combining the collective resources of Key and GMACCM enabled the borrower to secure the capital they needed while saving them time and money. We look forward to working with GMACCM again in the future."

About GMAC Commercial Mortgage

GMAC Commercial Mortgage Corporation (GMACCM), a wholly-owned subsidiary of GMAC Commercial Holding Corp., is a premier financial services firm with extensive funding sources that, coupled with a broad menu of innovative financing programs, serve the needs of borrowers of commercial real estate debt as well as the providers of such capital. GMACCM is an industry leader in loan origination, servicing, asset management, investment management and technology services. The diverse lending and servicing specialist and its affiliates have more than 100 offices worldwide. GMACCM has a servicing portfolio of more than $241 billion and provides a variety of financing products and services including permanent, interim, mezzanine and construction lending as well as equity capital for commercial real estate. GMACCM has specialized lending units focused on healthcare, hospitality and franchise and asset backed lending.

About KeyBank Real Estate Capital

KeyBank Real Estate Capital provides both on and off-balance sheet capital for virtually all commercial real estate property types. Its 665 financing professionals serve a national client base through 32 locations in major U.S. markets. It is a unit of Cleveland-based KeyCorp, one of the nation's largest bank-based financial services companies, with assets of approximately $84 billion. Key companies provide investment management, retail and commercial banking, consumer finance, and investment banking products and services to individuals and companies throughout the United States and, for certain businesses, internationally.

News releases and other information about GMACCM, its products and services are available at www.gmaccm.com.