Fontainebleau Miami Beach Lands $1.2B Financing Package
One of South Florida's biggest financing deals of the year has closed just in time for the holidays.
Jeffrey Soffer's Fontainebleau Development has secured a $1.2B debt package for the Fontainebleau Miami Beach, its luxury resort on Collins Avenue where a new conference center opened this month
New York-based Newmark Group arranged the debt, as well as a $550M loan for the JW Marriott Miami Turnberry Resort & Spa, which Soffer also owns. Goldman Sachs and JPMorgan Chase were lenders on both loans, according to a release.
The $1.2B debt package for the Fontainebleau Miami Beach is broken into a $975M CMBS loan and $225M of mezzanine debt. They combine to refinance $1.18B in existing debt tied to the property, Bloomberg reported.
Soffer also contributed $105M of equity in the historic luxury hotel at 4441 Collins Ave., bringing the total capital raised to $1.3B. The remaining funds are expected to repay a $75M construction loan for the new convention center and pay $40M in closing costs, Bloomberg reported.
The Fontainebleau Miami Beach, which originally opened in 1952, spans 22 acres with a distinctive curved design by Morris Lapidus. The hotel has 1,600 rooms, 11 pools, nine food and beverage outlets, a fitness center, a spa and 200K SF of meeting and event space across four towers, according to the release.
“Fontainebleau Development has long demonstrated a commitment to continuous reinvestment in our properties,” Fontainebleau Development President Brett Mufson told Bisnow in a statement. “The financing deals that we have secured will ensure that our resorts maintain a competitive edge while also positioning us to grow our iconic Fontainebleau brand in new markets.”
Turnberry Associates, owned by the Soffer family, purchased the property in 2005 for $325M, and the hotel has undergone $650M in renovations, The Real Deal reported.
Fontainebleau Development, which assumed ownership of the two properties in 2019 when siblings Jeffrey and Jackie Soffer split and divided their holdings, also refinanced its JW Marriott Miami Turnberry Resort & Spa.
The 270-acre resort at 19999 W. Country Club Drive in Aventura features 685 rooms, two golf courses, a private country club with 120K SF of meeting and event space, six restaurants and lounges, a 25K SF spa and a waterpark.
Newmark's global debt and structured finance team, led by Jordan Roeschlaub and Jonathan Firestone, arranged the financing.
“These financings underscore the enduring appeal of South Florida's premier hospitality assets,” Roeschlaub said in a statement. “These transactions highlight the confidence that institutional capital has in best-in-class assets and operators in this dynamic region.”
