Bal Harbour Shops has secured $550 million in financing to develop an additional 300,000 square feet at the iconic 463,114-square-foot luxury shopping center. The expansion will include a 57,414-square-foot space to be occupied by Barneys New York, which will be Barneys’ only flagship store in the southeastern United States. The open-air, fully leased global, luxury shopping destination is anchored by Saks Fifth Avenue and Neiman Marcus along Miami Beach in Bal Harbour, FL.
Holliday Fenoglio Fowler, L.P. worked on behalf of the borrower, Miami-based Whitman Family Development, to place the $150-million, eight-year, fixed- and the $400-million floating-rate construction facility with MetLife Investment Management. Loan proceeds will be used to retire an existing loan and fund the development of the expansion.
Matthew Whitman Lazenby, fourth-generation leader of Bal Harbour Shops and president and CEO of Whitman Family Development, LLC says, “It was important to us that we have an enduring relationship with a lender that understood, at an emotional level, the significance of Bal Harbour Shops to its tenants and customers. MetLife Investment Management is that lender and we are humbled and gratified to be associated with such a highly regarded institution. Despite its substantial investment in world class properties like Bal Harbour Shops, its people are easily its most valuable asset.”
The HFF capital markets team was led by executive managing director Manny de Zárraga, senior managing director Chris Drew, managing director Jim Dockerty and director Matthew McCormack.
“The loan marks the official launch of the Bal Harbour Shops expansion and represents the growth and strength of Miami’s retail real estate market,” HFF’s Drew says. “As the climate shifts for many traditional retail centers across the US, Bal Harbour Shops maintains its position as the most successful, high-end shopping destination in Florida and one of the most productive in the world. The Shops continues to experience intense demand from both existing tenants and retailers that have been waiting years to join its roster, and we are excited that this loan will allow Whitman Family Development’s expansion plan to come to fruition.”
Bal Harbour Shops has operated at 100% occupancy for several decades with a waiting list. In addition to the anchor tenants, the property is home to more than 100 global, high-fashion boutiques and brands, including Chanel, Gucci, Van Cleef & Arpels, Tiffany & Co., Salvatore Ferragamo and Valentino. The destination also boasts the highest concentration of restaurants in Bal Harbour.
MetLife Investment Management’s Arun Singh, vice president for the Southeast Region, and Jay Gadsby, director, originated the loan on behalf of MetLife Investment Management.
“We’re delighted to support the expansion of one of the nation’s leading luxury shopping centers in the US,” Singh said. “This development will support the local economy and ensure that Bal Harbour Shops remains a destination of choice for many years to come.”
Bal Harbour, which is located at 9700 Collins Ave. on 17.42 acres, was completed in 1965 as the first all-luxury fashion shopping center. The Shops is within one mile of numerous five-star hotels, including The St. Regis Bal Harbour, the Ritz Carlton Bal Harbour and The Four Seasons Hotel at the Surf Club.
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