$550M loan scored by HFF for Miami's famed luxury Bal Harbour Shops expansion

July 9, 2019

HFF secures $550M loan for expansion of luxury retail destination Bal Harbour Shops

Famed high-end shopping center along Miami Beach set to expand to meet significant demand despite shifting traditional retail landscape

 

MIAMI, FL – July 8, 2019 – Holliday Fenoglio Fowler, L.P. (HFF) announced today that it has arranged $550 million in financing for the expansion of the iconic Bal Harbour Shops, a 463,114-square-foot, open-air, fully leased global, luxury shopping destination anchored by Saks Fifth Avenue and Neiman Marcus along Miami Beach in Bal Harbour, Florida.  The loan is one of the largest construction loans ever to close in Miami.

HFF worked on behalf of the borrower, Miami-based Whitman Family Development, to place the $150 million, eight-year, fixed- and the $400 million floating-rate construction facility with MetLife Investment Management.  Loan proceeds will be used to retire an existing loan and expand Bal Harbour Shops by an additional 300,000 square feet, including a 57,414-square-foot space to be occupied by Barneys New York, which will be Barneys’ only flagship store in the southeastern United States.  A three-story promenade will be added to connect Barneys to the existing palm tree-lined promenade.  A new grand entrance at the northeast quadrant of the property will be added along with an expansion of the Neiman Marcus space by 20,000 square feet.

The HFF capital markets team was led by executive managing director Manny de Zárraga, senior managing director Chris Drew, managing director Jim Dockerty and director Matthew McCormack.

“The loan marks the official launch of the Bal Harbour Shops expansion and represents the growth and strength of Miami’s retail real estate market,” Drew said.  “As the climate shifts for many traditional retail centers across the U.S., Bal Harbour Shops maintains its position as the most successful, high-end shopping destination in Florida and one of the most productive in the world. The Shops continues to experience intense demand from both existing tenants and retailers that have been waiting years to join its roster, and we are excited that this loan will allow Whitman Family Development’s expansion plan to come to fruition.”

Bal Harbour Shops has operated at 100% occupancy for several decades with a waiting list.  In addition to the anchor tenants, the Shops is home to more than 100 of the most sought-after global, high-fashion boutiques and brands, including Chanel, Gucci, Van Cleef & Arpels, Tiffany & Co., Salvatore Ferragamo and Valentino.  The destination also boasts the highest concentration of restaurants in Bal Harbour.

MetLife Investment Management’s Arun Singh, vice president for the Southeast Region, and Jay Gadsby, director, originated the loan on behalf of MetLife Investment Management.

“We’re delighted to support the expansion of one of the nation’s leading luxury shopping centers in the U.S.,” Singh said.  “This development will support the local economy and ensure that Bal Harbour Shops remains a destination of choice for many years to come.”

Situated at 9700 Collins Avenue on 17.42 acres in an exclusive oceanfront community located between the Atlantic Ocean and the Intracoastal Waterway, Bal Harbour Shops was completed in 1965 as the first all-luxury fashion shopping center and has been meticulously maintained throughout the years.  The Shops is within one mile of numerous five-star hotels, including The St. Regis Bal Harbour, the Ritz Carlton Bal Harbour and The Four Seasons Hotel at the Surf Club.

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