Miami Design District Lands $250M Refi for Paradise Plaza
By Julia Echikson August 25, 2023 2:51 pm
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The owners of the Miami Design District scored $250 million to refinance parts of the 18-block outdoor mall.
The loan from Deutsche Bank (DB) will cover a collection of storefronts known as Paradise Plaza, according to law firm Bilzin Sumberg, which represented the ownership group comprised of Miami-based developer Dacra, private equity firm L Catterton and real estate giant Brookfield (BN) Properties.
The property, at the northern end of the development at 151 NE 41st Street, totals 172,526 square feet, including 120,000 square feet of retail and restaurant space in addition to event venues and public space. Tenants include luxury fashion brands Balenciaga as well as Michelin-starred restaurants L’Atelier de Joël Robuchon and Le Jardinier, among others.
Previously, the Paradise Plaza was covered under a $250 million loan from Rialto Capital Management dating to 2021, according to property records. That mortgage also included buildings along NE Second Avenue, 39th Street, 40th Street and 41th Street.
The new financing for the Paradize Plaza comes three years after the joint venture secured $500 million from Bank of America to refinance 15 buildings at the southern section of the shopping district.
Last year, Dacra, led by developer Craig Robins, nabbed $44 million to refinance a two-story building within the district housing B&B Italia and Design Within Reach showrooms.
In the coming years, the Design District, home to Louis Vuitton, Chanel and Hermès stores, is set to undergo a major expansion. Late last year, Dacra, together with several partners, bought a 15-building portfolio along NE 39th Street for $166 million with plans to add a mixed-use development that’s likely to include a hotel.
Earlier this year, the developer proposed building a 20-story rental building on a half-acre lot, sandwiched between 36th Street and the I-195 expressway.
A representative for Dacra declined to comment.
Julia Echikson can be reached at jechikson@commercialobserver.com.
