Blackstone Ups Bal Harbour Shops Construction Debt to $740M

Whitman Family Development has secured an additional $190 million from real estate behemoth Blackstone (BX) to refinance and complete the expansion of Bal Harbour Shops, an uber-luxury mall north of Miami Beach, property records show. 

The new floating-rate financing — from the private equity giant’s real estate debt strategies division, better known as BREDS — brings the total financing to $740 million. The debt replaces a $550 million construction loan from MetLife Investment Management, which has $387 million in outstanding debt and dates back to 2019, according to mortgage documents.

Since its opening in 1967, the open-air Bal Harbour Shops has emerged as one of most luxurious and coveted malls in the country, featuring luxury retail brands like Chanel, Gucci, Prada and Goyard. 

Six years ago, Whitman Family Development, which developed the 511,000-square-foot mall, embarked on a 250,000-square-foot expansion, after a decades-long battle to secure approvals. The new wing is expected to open in 2026. 

“Blackstone’s decision to provide financing for our retail expansion, now underway, will help shape the next chapter of Bal Harbour Shops’ legacy,” Matthew Whitman-Lazenby, president and CEO of Whitman Family Development, said in a statement.

JLL’s Manny de Zarraga, Chris Drew, Brian Gaswirth, Matt McCormack, Maddy McMillen, and Kim Flores advised on the loan placement. Erica English, attorney at Katz Barron, served as legal counsel on behalf of Bal Harbour Shops, with Arun Singh, founder of Radial Capital, serving as a key advisor. (A representative for Blackstone confirmed the loan.)

The expansion may not be over anytime soon. This year, the fourth-generation family-owned company unveiled plans to add 45,700 square feet of additional retail space, a 70-room hotel and 528 apartments, using the Live Local Act. The Florida law, which passed last year, grants developers broad powers to secure approvals if they designate at least 40 percent of units as workforce housing for a minimum of 30 years.

After fielding fierce pushback from Bal Harbour officials over the yet another expansion, the developer sued the town to force approvals for the plan, which includes four 275-foot-tall towers.

Julia Echikson can be reached at jechikson@commercialobserver.com.