Simon Nearing $555M CMBS Package to Refi Dadeland Mall in South Florida

Simon Property Group and Prime Property Fund are closing in on a $555 million commercial mortgage-backed securities debt package to refinance the Dadeland Mall in suburban Miami-Dade County. 

Wells Fargo, Bank of Montreal and J.P. Morgan Chase Bank are originating the 10-year, fixed-rate, interest-only loan, according to Fitch Ratings. The agency valued the 1.5 million-square-foot mall at $909 million, applying a 7 percent capitalization rate. 

The transaction — which is expected to close Dec. 3 — will refinance $345 million in existing debt, return just under $200 million of equity to the sponsors, fund $5.7 million in landlord obligations, and pay $4.5 million in closing costs.

The Dadeland Mall at 7535 North Kendall Drive generated $61.6 million in net operating income last year, and $66.4 million in the 12 months leading up to September 2026.

In total sales, the indoor shopping center produced $892 million over the past year preceding August, including $126 million from Apple, $116 million from Macy’s, $87 million from Saks Fifth Avenue and $60 million from Zara.

The asset is home to a mix of low- and high-end brands, such as Skims, Aritzia, Princess Polly, Salvatore Ferragamo and Dolce & Gabbana. Over the past decade, the owners have invested $82.5 million to renovate the four-story retail center, which was nearly fully occupied in September. 

Simon Property Group, one of the country’s largest mall owners, has been stepping up its investments across South Florida in recent years. 

Last year, the Indianapolis-based operator bought the 500,000-square-foot mall at Brickell City Centre in Miami for $512 million. This year, it filed plans to expand its 1.7 million-square-foot indoor mall in Boca Raton by redeveloping the nearby, shuttered Sears department store.

A representative for Simon Property Group did not immediately respond to a request for comment.

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