Berkadia Secures $46.97MM Loan for Acquisition of Downtown Dadeland

October 12, 2018

Berkadia Secures $46.97MM Loan for Acquisition of Downtown Dadeland

October 12, 2018

Berkadia Secures $46.9M Acquisition Loan for Mixed-Use Development in Miami | REBusiness Online

Downtown Dadeland Sells for $78M | South Florida Business Journal

Miami-Based Investment Firm Acquires 7-Acre Mixed-Use Development | South Florida CRE News 

Midtown Capital Partners Drops $78M on Downtown Dadeland Shops | The Real Deal 

Berkadia Secures $46.97MM Loan for the Acquisition of Downtown Dadeland | Multifamily Press 

Miami-based Midtown Capital Partners acquires seven-acre mixed-use development

MIAMI (Oct. 12, 2018) – Berkadia has arranged a $46.97 million loan for the acquisition of Downtown Dadeland, a seven-acre urban retail development located across from one of the country’s top-performing malls. Located at the intersection of East Kendall, Pinecrest and South Miami, the property consists of 126,133 square feet of ground floor retail space occupied by a mix of national, regional and local tenants, along with 416 condo units and over 500 parking spaces in seven buildings. The retail portion of the property was 97 percent leased at the time of sale.

Senior Director Brad Williamson and Senior Managing Director Mitch Sinberg of Berkadia’s South Florida office arranged the loan on behalf of Miami-based Midtown Capital Partners, led by Alejandro Velez and Alexander Saieh. Midtown Capital Partners is a private real estate portfolio investment and management firm focused on commercial income-generating properties in the office, retail and multifamily market. Midtown Capital Partners has deployed over $230 million in South Florida over the past 18 months, acquiring both office and retail institutional-quality assets.

A life company originated an initial $44.57 million loan with a $2.4 million earnout. The 10-year loan was secured with five years interest only and a competitive interest rate with no prepayment after seven years.

Brad Williamson stated, “We were able to rate-lock at application, allowing us to take a significant amount of risk off the table, giving our client certainty of execution as well as creatively structuring the loan with optimal prepayment flexibility.”

“Downtown Dadeland is the urban/suburban hub for southern Miami Dade County, with a large, affluent population located within a five-mile radius,” said Alejandro Velez. “While Miami’s retail market remains robust, with a vacancy rate of only 3.8 percent, the vacancy rate in this submarket hovers around 2.6 percent. The extraordinary location attracts local and foreign shoppers that underpin the market’s retail spending and employment growth. We believe the projected residential and hotel development in the Dadeland area and the proximity to the Baptist Hospital along with the soon to be started The Underline green corridor will bring unprecedented potential to Downtown Dadeland. Midtown envisions an even more compelling lifestyle destination that caters not only to the surrounding neighbors, but Miami in general. We are excited to be part of the future of this community.”

Built in 2008 and renovated in 2015, Downtown Dadeland is located at 7270 North Kendall Drive in the “Dadeland Golden Triangle”—a special zoning district established in 1999 to promote density at the convergence of road and transit infrastructure. Downtown Dadeland is bound by three of the region’s most heavily trafficked thoroughfares—US Highway 1, Kendall Drive and the Palmetto Expressway—and adjacent to the Dadeland South Metrorail line. This area is home to over 4,500 residential units, 2.2 million square feet of retail and over 2 million square feet of office space.

Downtown Dadeland boasts an experiential and lifestyle-oriented mix of national and local retail tenants, including neighborhood dining, boutique fitness, entertainment, furniture and e-commerce resistant soft goods. Tenants include West Elm, Chili’s Bar & Grill, Men’s Wearhouse, Club Champion, Orangetheory Fitness, Paul Mitchell and The Brass Tap, among others. It has become a culinary destination featuring acclaimed Miami chefs such as Pubbelly Sushi, Harry’s, Indian cuisine revelation Ghee, up-coming Italian eatery Erba, Barley and farm-to-table concepts such as The Brick.

Downtown Dadeland is located across the street from Dadeland Mall, which is the premier retail destination serving southern Miami-Dade County and one of top performing malls in the U.S. The mall is anchored by Nordstrom, Saks Fifth Avenue and Macy’s and tenanted by 185 specialty stores including among others, Apple, Boss, Microsoft, Porsche Design, Rolex, Tesla, Urban Outfitters and Zara. The mall draws more than 18 million shoppers annually from across the world.