Palm Beach Outlets scores $165M in financing

Miami /
Jun.June 17, 2015 05:30 PM

Palm Beach Outlets in West Palm Beach has landed a massive $165 financing deal from an unnamed institutional investor.

News of the deal comes just three weeks after the shopping center was purchased for a staggering $278 million, marking the second-most-expensive commercial deal in Palm Beach County’s history.

Its new owners, New England Development and a fund managed by Clarion Partners, used a portion of the loan to make the acquisition. The rest of the funds are described as “long-term, fixed-rate loan” that cover both the existing 459,633-square-foot shopping center, and land that will house a future development with 105,000 square feet of retail space.

The loan comes from Cornerstone Real Estate Advisors, which worked on behalf of an unnamed institutional investment. Cornerstone has offices around the world, and manages more than $47 billion in assets, according to its website.

Riaz Cassum and Chris Drew of HFF represented the borrower for the deal, according to a press release.

Palm Beach Outlets was built in 2014 on the site of the former Palm Beach Mall. The mall became troubled near the end of its lifetime, and was even the scene of a murder before closing in 2010. It was sold for $35.5 million a year later to a group that included Eastern Real Estate and Lubert-Adler, as well as New England Development. The team redeveloped the property into the Palm Beach Outlets, which has enjoyed a strong lease rate of 96 percent and is anchored by Saks Off 5th Avenue.

The new complex is considered a hugely successful redevelopment, and its recent sale is an example of Palm Beach County’s strengthening retail market. — Sean Stewart-Muniz


Related Articles

arrow_forward_ios
Dan Deitchman and Koby Assaraf with a rendering of Industry | Oakland Park

Oakland Park developer partners with former Link Real Estate exec on new firm

Oakland Park developer partners with former Link Real Estate exec on new firm
Renderings of the project (Group P6)

Group P6 lands $69M construction loan for Boca Raton project

Group P6 lands $69M construction loan for Boca Raton project
Alex Sapir and Bella Sapir (Credit: Mark Von Holden/WireImage via Getty Images, and ADRIEL REBOH/Patrick McMullan via Getty Images)

Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside

Alex Sapir’s family closes on condos at Sapir’s Arte in Surfside
The Lincoln at 1691 Michigan Avenue

Citing Covid-19 shutdown, Williams Sonoma and Pottery Barn want out of Lincoln Road

Citing Covid-19 shutdown, Williams Sonoma and Pottery Barn want out of Lincoln Road
Renderings of the project and Gil Dezer (Getty; Renderings via  Zyscovich Architects)

Dezer’s 30-acre megaproject in North Miami Beach gets first approval

Dezer’s 30-acre megaproject in North Miami Beach gets first approval
Jeff Burns, Nick Rojo, The Bohemian Lake Worth

Affiliated Development’s Lake Worth Beach apartment project approved

Affiliated Development’s Lake Worth Beach apartment project approved
A rendering of the Intracoastal Mall and Gil Dezer

Dezer’s plans to remake Intracoastal Mall face opposition

Dezer’s plans to remake Intracoastal Mall face opposition
Southland Mall in Cutler Bay

Wells Fargo seeks to foreclose on Southland Mall in Cutler Bay

Wells Fargo seeks to foreclose on Southland Mall in Cutler Bay
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...