The Real Deal Miami

Midtown Capital Partners drops $78M on Downtown Dadeland shops

Pebb Capital and Duncan Hillsley Capital paid $39M for the property in 2014 and renovated it in 2015
By Katherine Kallergis | October 12, 2018 05:30PM

Downtown Dadeland

UPDATED, Oct. 15, 3:40 p.m.: A joint venture between Pebb Capital and Duncan Hillsley Capital just sold Downtown Dadeland to Midtown Capital Partners for $78.2 million.

The deal includes about 126,000 square feet of ground floor retail space at 7270 North Kendall Drive that’s 97 percent leased to tenants like Pasión del Cielo, West Elm, Orangetheory Fitness, Ghee and Harry’s Pizzeria.

The development, which features 416 condos and more than 500 parking spaces across seven buildings, is across the street from Dadeland Mall. Only the retail and parking sold, a spokesperson said.

Midtown Capital Partners, led by Alejandro Velez and Alexander Saieh, financed the acquisition with a 10-year, nearly $47 million loan, according to a release. Berkadia’s Brad Williamson and Mitch Sinberg arranged the financing, which calls for an initial $44.6 million loan with a $2.4 million earnout. CBRE brokered the deal.

Downtown Dadeland was built in 2008 and renovated in 2015. The Pebb-Duncan Hillsley joint venture, DHPI Dadeland LLC, paid $39 million for the property in 2014. It was 50 percent leased at the time.

CREC will continue to handle retail leasing, Velez said. The goal is to lease the remaining 3,000 square feet of space and improve the property’s visibility, he added.

Nearby, Jimmy and Kenny Tate plan to redevelop a property at 7300 North Kendall Drive into retail or retail and apartments.

In August, Midtown Capital Partners paid $15 million for a Coral Gables office building as part of a sale-leaseback deal. The Miami-based commercial investment and management firm manages $350 million of income-generating properties in South Florida, according to its website.