Karmely’s KAR Properties pays off $128M condo inventory loan for 2000 Ocean

October 4, 2023

Developer Shahab Karmely paid off a $128 million condo inventory loan for 2000 Ocean, a boutique residential building in Hallandale Beach.

Karmely’s KAR Properties secured the financing in early 2022 for the unsold inventory at 2000 Ocean, a 38-story, 64-unit oceanfront tower that was completed in December 2021. New York-based Madison Realty Capital, led by Josh Zegen, provided the debt.

Developers typically use condo inventory loans to pay for carrying costs of unsold units and pay off existing debt, including construction loans. In the case of 2000 Ocean, the condo inventory loan from Madison paid off debt that Apollo Commercial Real Estate had issued in 2018.

Karmely said the Hallandale Beach building is about 70 percent sold, leaving about 19 units unsold. Property records show 38 units have sold, which comes out to nearly 60 percent of the building. Closings can take weeks to be recorded with the county.