Fontainebleau Development Lands $1.2B to Refi Miami Beach Hotel
By Julia Echikson December 5, 2024 2:05 pm
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Jeff Soffer went to the bond market to secure $1.2 billion to refinance the Fontainebleau Miami Beach, a landmark oceanfront resort.
Soffer’s firm, Fontainebleau Development, sold a $975 million commercial mortgage-backed security to refinance its debt, while also taking out CMBS and mezzanine loans that could be worth as much as $225 million. Soffer pitched in $105 million of his own money, upping the total proceeds raised to $1.3 billion.
Newmark‘s Jordan Roeschlaub and Jonathan Firestone negotiated the deal.
“The financing deals that we have secured will ensure that our resorts maintain a competitive edge while also positioning us to grow our iconic Fontainebleau brand in new markets,” Fontainebleau Development president Brett Mufson said in a statement.
The MiMo-style hotel at 4441 Collins Avenue remains one of the largest hotels in the Miami area, featuring 1,504 rooms. In 2008, the owner completed a $1 billion renovation.
The funds will refinance $1.18 billion of debt, which includes a CMBS and a mezzanine loan, while also paying back a $75 million construction loan from Goldman Sachs to add a 50,000-square-foot convention center to the property.
The deal generated about $40 million in closing costs fees. Goldman Sachs and J.P. Morgan Chase spearheaded the effort.
The financing comes just a month after Fontainebleau Development added $63 million to an existing $412 million loan for one of its other properties, JW Marriott Miami Turnberry Resort & Spa in Aventura.
Other major refinancing of South Florida hospitality properties this year have included a $1 billion loan for the Boca Raton Resort & Club and a $575 million loan for the Diplomat Beach Resort in Hollywood.
Update: The story was updated after the deal closed.
Julia Echikson can be reached at jechikson@commercialobserver.com.
