Terra’s CentroCity Little Havana project nets $230M in financing

First phase entails renovating strip mall, adding a new apartment complex and 50K sf of new office-and-retail space

Terra Group's David Martin and the CentroCity project at 3825 Northwest 7th Street (Terra Group, Getty)
Terra Group's David Martin and the CentroCity project at 3825 Northwest 7th Street (Terra Group, Getty)

UPDATED, Aug 15, 4:15 p.m.: Terra’s CentroCity mixed-use development in Little Havana scored $230 million to finance construction.

Athene, an affiliate of Apollo Global Management, provided a senior loan and Mack Real Estate Credit Strategies contributed a mezzanine component, according to a press release. The financing was arranged by Walker & Dunlop.

Terra, led by CEO David Martin, will use the capital to begin the first phase of an ambitious project on a 39-acre retail site at 3825 Northwest 7th Street, which is adjacent to Magic City Casino. In addition to repositioning an existing strip mall, Terra plans to build a 470-unit apartment complex with three buildings and 50,000 square feet of office and retail space on an outparcel.

Designed by RSP Architects, the revamp of the Centro Shopping Plaza will be 350,000 square feet of newly built retail and restaurant space. Target also signed an anchor tenant last year for a 100,000-square-foot store that was previously occupied by Kmart.

In a statement, Martin said construction is underway and phase one is slated for completion in 2024. Terra secured favorable construction financing due to the growing demand for urban infill projects and market-rate housing in Miami, Martin said.

Subsequent phases of the new development will include up to 1,200 multifamily units across seven eight-story buildings, as well as a 250,000-square-foot office building, 3,145 parking spaces and a charter school. The multifamily, office and school components are being designed by Arquitectonica.

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CentroCity won city approvals last year. Terra acquired the property for $28.6 million in 2020 from HayDay Inc., a company managed by Magic City Casino owners, the Havenick family, records show. HayDay retained a small stake in the property.

Terra is involved in several high-profile projects in South Florida. In January, Mack Real Estate loaned the developer $141 million to build a mixed-use project in Bay Harbor Islands consisting of residential units, as well as offices and retail. Last year, Terra paid $31.5 million for the development site where the sellers had previously won approvals for 90 residential units, 98,800 square feet of office, and 14,900 square feet of commercial space.

Terra is also partnering with Russell Galbut’s GFO Investments to develop Five Park, a 240-unit condominium tower in Miami Beach. Last year, the joint venture secured a $345 million construction loan.

Terra faced accusations of contributing to the partial collapse of Champlain Towers South in Surfside that killed 98 people in June of last year. The condominium was next door to Eighty Seven Park at 8701 Collins Avenue, a new residential tower co-developed by the company.

In 2016, Champlain Towers South residents complained that the construction of Eighty Seven Park caused their building to shake, according to lawsuits filed against Terra’s development entity 8701 Collins and other defendants.

The insurer for 8701 Collins, the Terra-led entity that developed Eighty Seven Park, will pay $28 million as part of a $1 billion settlement for survivors and relatives of the victims.

Correction: A previous version of this story stated the GFO’s development at Five Park will have 516 condo units. It will actually have 240 units.