Terra, Turnberry Secure $392M Loan for Miami Beach Convention Center Hotel

David Martin and Jackie Soffer’s long-awaited Miami Beach convention center hotel is finally getting off the ground. 

The joint venture between Terra and Turnberry scored a $392 million construction loan from Tyko Capital for the Grand Hyatt Miami Beach, an 800-room, 17-story property adjacent to the Miami Beach Convention Center. 

Construction is expected to be finished in late 2027, with pre-construction site work already completed. Eastdil Secured arranged the financing.

The COVID-19 pandemic delayed the project by about two years. In 2018, Miami Beach voters approved the hotel project on a city-owned site. That same year, the City of Miami Beach had completed a $600 million renovation of the convention center, where high-profile events such as Miami Beach’s Art Basel exhibition are held each year. 

Last year, Terra and Turnberry secured a $75 million, taxpayer-funded grant from the Miami Beach Redevelopment Agency to advance the development, which is expected to cost $590 million

The Arquitectonica-designed project will feature 12 floors of guest rooms, along with four floors of meeting and ballroom spaces, plus a skybridge that will be connected to the convention center.

The development pairs two of the biggest names in South Florida real estate. Just this week, Terra paid $205 million for an oceanfront motel on Key Biscayne, which will be redeveloped into a luxury condo development. Turnberry owns the 1.8 million-square-foot Aventura Mall, one of the most successful malls in the country.

Since launching last year, Tyko Capital, led by Adi Chugh and backed by hedge fund Elliott Management, has gone after marquee projects. It has provided construction financing for Related Group’s waterfront luxury condo developments in Bal Harbour and Brickell, in addition to refinancing 830 Brickell, Miami’s trophy office building. 

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