By Jai-Leen James, Contributing Reporter
MIAMI BEACH, FLORIDA – Holliday Fenoglio Fowler, L.P. announced Monday, July 8th, that they secured $550 million in financing for the expansion of the Bal Harbour Shops. The loan was arranged on behalf of Miami Beach-based real estate developer Whitman Family Development.
With the loan, Bal Harbour Shops will add more than 340,000 square feet to the already 463,114 square-foot mall. After construction, the mall will total 763,114 square feet. Renovation plans include adding the first Barneys New York flagship store in the south east region of the United States and other new high-end shops and restaurants.
A new three-story promenade will connect Barneys New York to the existing palm tree-lined walkway. Additionally, a new grand entrance will be built at the northeast quadrant of the property and Neiman Marcus will expand by 20,000 square feet. Barneys New York will occupy a 57,414 square-foot space.
The Holliday Fenoglio Fowler, L.P. 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.”
In 1965, Bal Harbour Shops opened as the first all-luxury fashion shopping center in the United States. Founded by Stanley Whitman (who passed away in 2017), The Shops have maintained an occupancy level of 100 percent for several decades. Many stores are on a waiting list hoping to join Tiffany & Co., Gucci, Valentino, Chanel and others as tenants in The Shops.
“We’re thrilled to be making this major investment in the future of Bal Harbour Shops, which will solidify our longstanding place at the forefront of global luxury retail and build on the vision that my grandfather Stanley Whitman had when he first developed the Shops in the 1960s,” said Matthew Whitman Lazenby, President and CEO of Whitman Family Development.
Whitman Family Development will use $150 million of the loan to pay off an existing loan. Arun Singh and Jay Gadsby of MetLife Investment Management originated the loan on a fixed interest rate for eight years. The remaining $400 million will be used towards the expansion and is underwritten with a floating interest rate.
“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.”
“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,” Drew said.
The expansion project is estimated to be completed by 2023.
Correction: This article has been updated on July 16th to clarify that Bal Harbour is a separate village north of the City of Miami Beach.