Bal Harbour Shops secures $550 expansion loan
today Jul 9, 2019
High-end shopping center Bal Harbour Shops will be getting a facelift thanks to a $550 million loan secured from MetLife Investment Management.
With the loan, the iconic 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 -- will add an additional 300,000 square feet.
Welcomed additions include a 57,414-square-foot space for Barneys New York, which will be Barneys’ only flagship store in the southeastern United States, as well as an expansion of the Neiman Marcus space by about 20,000 square feet and the addition of new retailers.
“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,” said senior managing director Chris Drew, of the HFF capital markets team, who brokered the loan with MetLife Investment Management.
“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.”
Completed in 1965 as the first all-luxury fashion shopping center, Bal Harbour has maintained its reputation by operating at 100 percent occupancy for several decades, while also holding a waiting list.
The Shops is home to more than 100 of the most sought-after international high-fashion boutiques and brands including Chanel, Gucci, Van Cleef & Arpels, Tiffany & Co., Salvatore Ferragamo and Valentino.
Whitman Family Development got final approval for the expansion from the Bal Harbour Village Council in 2017, after decades of Whitman and his family seeking permission.
The agreement still required the Whitman family to provide benefits to the community, such as a new village hall.
The loan is one of the largest construction loans ever to close in Miami. New retailers are expected to be announced in the next 18 months, with construction planned to be complete for early 2024 with some store openings potentially coming sooner.
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