$58M Sourced to Refi South Florida Retail Portfolio
- Oct 30, 2017
HFF has completed the $58 million refinancing of a portfolio of nine retail properties totaling about 276,000 square feet in Miami-Dade County, Fla. The borrower was MMG Equity Partners, of Pinecrest, Fla., on whose behalf HFF was able to place the 10-year, fixed-rate loan with an HFF correspondent life insurance company. In addition, HFF will service the loan.
The portfolio is 97 percent leased and comprises six properties anchored by Navarro Pharmacy, two anchored by President Supermarkets and one strip center. Local South Florida chain Navarro Pharmacy was acquired by CVS in 2014, but is still operated as a separate brand.
The properties, located in urban infill areas in what reportedly are some of South Florida’s densest retail submarkets, are:
- Sunset Village Shopping Center, 10700 SW 72nd St., Miami
- Bird West Plaza, 14465 SW 42nd St., Miami
- Flagler Plaza, 5300 W. Flagler St., Miami
- Navarro Gables, 3949 SW 8th St., Miami
- Little River Retail, 8050-8100 N. Miami Ave., Miami
- Kendall Drive Retail, 9720 N. Kendall Drive, Miami
- Navarro Miami Beach, 631 71st St., Miami Beach
- Colonial Shopping Center, 400 NE 125 St., North Miami
- Navarro Sunny Isles, 18500 Collins Ave., Sunny Isles Beach
Tools of the Trade
The HFF debt placement team representing the borrower included Senior Managing Director Chris Drew, Senior Director Nat Scarmazzi and Associate Matthew McCormack. “The strength of the MMG Equity Partners sponsorship, combined with the exceptional locations of each of the assets, led to significant interest from top-tier lenders,” Scarmazzi said in a prepared statement. “Ultimately, a life company delivered an option at a favorable cost of capital that coincided with MMG’s long-term vision for the portfolio.”
Loan proceeds reportedly will be used for working capital and to fund the acquisition of additional Florida shopping centers.
MMG Equity Partners is a privately owned investment company focused on the long-term ownership, development and acquisition of commercial properties in Florida. Its portfolio includes 40-plus properties totaling 2 million square feet across the United States and Canada.
The Miami-Dade retail real estate market is thriving on a population base that is culturally diverse, growing, dense and relatively young, according to a recent report by Cushman & Wakefield. About 380,000 square feet of new retail space has been delivered this year, with another 1 million square feet under construction.