RedSky and JZ boost loan for Design District properties to $220M

Corner of Northeast 39th Street and North Miami Avenue
Corner of Northeast 39th Street and North Miami Avenue

It’s all about leverage for partners RedSky Capital and JZ Capital Partners.

The two investment firms just borrowed an additional $34 million against their assemblage in Miami’s Design District, boosting their total loan principal to a whopping $220 million.

County records show the companies took out their new financing for 11 parcels at the corner of North Miami Avenue and Northeast 39th Street, mostly consisting of mid-century retail buildings no larger than 11,000 square feet a piece — save for the much larger 1980s-era building at 3995 North Miami Avenue.

The loan was provided by an affiliate of Apollo Commercial Real Estate Finance, a New York real estate investment trust that originates and trades in commercial debt.

Sign Up for the undefined Newsletter

All told, the partners own nearly 100,000 square feet of existing commercial space, or just under 2 acres of prime land on the block between Northeast 39th and Northeast 40th Street, and North Miami Avenue and Northeast First Avenue.

A representative for JZ declined comment, while a RedSky employee said the company is “not speaking with media at this time.”

RedSky and JZ assembled their holdings there amid a wave of investment from New York firms looking to cash in on Miami’s burgeoning Design District. The two companies paid roughly $236 million to purchase the properties through separate deals with Thor Equities and Tishman Corp. over the last year and a half.

The neighborhood’s rapid redevelopment has attracted a number of luxury retailers like Hermès and Louis Vitton, all while pushing up rental prices at some properties to more than $100 per square foot on an annual basis.

Recommended For You