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

Companies own roughly 1.2 acres of prime commercial turf on that block

Jun.June 20, 2016 01:30 PM

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.

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.

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