The Real Deal Miami

Fontainebleau Hotel Miami Beach scores $260M in financing

Financing boosts mortgage to $795M

March 11, 2016 12:00PM
By Katherine Kallergis

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Fontainebleau Miami Beach

Fontainebleau Miami Beach

Turnberry Associates has closed on a $260 million boost to its existing mortgage for the Fontainebleau Hotel in Miami Beach.

Miami-Dade County records show Turnberry affiliates took the loan out on Wednesday for the 1,594-room resort at 4441 Collins Avenue. The $260 million in financing boosts the mortgage to $795 million. Goldman Sachs Bank USA and the Bank of China each provided $397.5 million.

Mario Romine, senior vice president, general counsel for special projects, signed the loan document.

In December 2013, Turnberry, led by Jeffrey and Jackie Soffer, completed a $535 million refinancing led by JPMorgan Chase Bank. That year, the Soffers also regained full control of the hotel after they had previously sold a 50 percent interest to Dubai World.

Designed by prominent architect Morris Lapidus, the Fontainebleau first opened in 1954, according to the resort’s website. The owners spent $1 billion on a 2008 renovation of the 20-acre oceanfront resort. The Fontainebleau currently has 12 restaurants and bars, two nightclubs — including the popular LIV — and a 40,000-square-foot spa.

Turnberry’s chief financial officer Aly-khan Merali was not immediately available for comment.

Turnberry owns a majority interest of Aventura Mall, and recently broke ground on an expansion of the upscale shopping center with $213.5 million in construction financing. At the Greater Miami Chamber of Commerce’s 2016 Real Estate Summit on Thursday, Merali said Aventura Mall generates $1,700 per square foot in sales. In January, Seritage Growth Properties, a publicly traded real estate investment trust that owns Sears’ real estate assets, filed a lawsuit against the owners of the mall to stop the expansion.

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