Jeff Soffer (left) and Brett Mufson.
Jeff Soffer and Brett Mufson
Chairman and chief executive officer; president and partner at Fontainebleau Development
Even though interest rates have threaded down slightly, raising debt for commercial real estate is still no easy feat. But Jeff Soffer and Brett Mufson have managed to do so in the past year — twice.
Fontainebleau Development secured a mammoth $1.2 billion bond and debt package to refinance the marquee Fontainebleau Miami Beach, a 1,504-room resort along the city’s oceanfront. The hotel owner sold a $975 million commercial mortgage-backed securities loan to refinance its debt, while also taking out CMBS and mezzanine loans that could be worth as much as $225 million. The financing, too, paid back a $75 million construction loan for a five-story, 45,000-square-foot convention center, which was completed last year.
The Fontainebleau Miami Beach refinancing came on the heels of another major package. Goldman Sachs and J.P. Morgan refinanced a $412 million loan from Bank of China New York Branch, covering the JW Marriott Miami Turnberry Resort & Spa, an 685-room resort in Aventura that also houses two 18-hole golf courses.
In this environment, the debt packages are a testament to the properties’ strength.
The Fontainebleau casino in Las Vegas appears to be gaining its footing, too. After a rocky start, new reviews softened, and the 67-story property welcomed L.A. culinary hot spot Mother Wolf.
It looks like the party will continue at the 3,644-room property. Last week, after tense negotiations, Fontainebleau Development reached an agreement with the culinary and bartenders unions, marking its first labor contract with staff. The deal will ensure that the resort remains open and without the presence of a picket line.
