Downtown Dadeland sells for $78M
The Downtown Dadeland retail center in Miami-Dade County was sold to a local real estate firm for $78.2 million.
DHPI Dadeland LLC, a joint venture between Duncan Hillsley Capital and PEBB Capital, sold the 126,000 square feet of ground-floor retail and a 500-plus-space parking garage to Miami-based Midtown Capital Partners. The property spans seven buildings at 7270 North Kendall Drive. Berkadia’s Brad Williamson and Mitch Sinberg helped the developer secure a 10-year, $46.97 million loan from a life insurance company with interest-only payments for the first five years. CBRE's Dennis Carson and Casey Rosen represented the sellers in the deal.
The condos above the retail space are privately owned and weren’t part of the deal.
“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, a partner in Midtown Capital Partners.
“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.”
Downtown Dadeland was built in 2008. It last traded for $39 million in 2014, and was renovated shortly afterwards.
The retail center is 97 percent occupied, according to Berkadia. Tenants include West Elm, Chili’s Bar & Grill, Men’s Wearhouse, Club Champion, Orangetheory Fitness, Paul Mitchell, the Brass Tap and Pubbelly Sushi.
“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,” Williamson said.
Midtown Capital Partners has over $450 million in capital under management.