Bal Harbour Shops has secured a $550 million loan and will now ramp up an expansion project.
The mall will become the first U.S. retail location with Barneys, Saks Fifth Avenue and Neiman Marcus in the same space. A long-term lease has already been signed by Barneys.
The expansion will add 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.
Bal Harbour Shops includes 463,114-square-feet, and has operated at 100% occupancy for several decades with a waiting list.
Whitman Family Development, the borrower, was granted a $150 million, eight-year, fixed- and a $400 million floating-rate construction facility. Loan proceeds will be used to retire an existing loan and the expansion.
Whitman is led by Matthew Whitman Lazenby, the fourth generation leader of the developer.
Holliday Fenoglio Fowler, led by executive managing director Manny de Zárraga, senior managing director Chris Drew, managing director Jim Dockerty and director Matthew McCormack, arranged the loan. MetLife Investment Management is the lender.
It is among the largest construction loans ever in Miami.
HFF says the size of the loan, the expansion of the Shops, and the luxury Barneys brand’s official entrance into the Southeast U.S., all represent the fact that retail is not dead and Miami’s luxury market continues to flourish. As the Gateway to the Americas and the safe haven for many wealthy northeasterners seeking refuge from State and Local Tax (SALT) deduction cap in the no-tax state of Florida, Miami keeps rising as a global capital for business, commerce, and luxury, the firm said.
Bal Harbour Shops is in a unique position to buck the brick and mortar retail trend with its unprecedented track record and projection of success, Whitman added.