MIAMI-11 11 Lincoln Road has won a $76-million refinance loan. The iconic 400,000 square-foot project sits on the corner of Alton and Lincoln Roads, offering retail, restaurant, residential and office space.
The Bilzin Sumberg team, led by partner Adam Lustig, represented Robert Wennett, principal of MBeach1 in closing the loan. HSBC Bank USA and PNC Bank acted as co-arrangers of the loan, with HSBC serving as administrative agent for the loan. This financing is one of the largest conventional loans in Miami since the credit freeze took hold in 2008.
“This is a significant step in the right direction,” Lustig tells GlobeSt.com. “By and large, this is a very unique project in a great location with a very strong sponsor and great tenants. These factors certainly contributed to getting a deal this size done at this time in the market.”
1111’s retail space is fully leased with such tenants as Rosa Mexicano, Taschen Books, Y-3, Mac Cosmetics, Nespresso, Shake Shack, and Juicy Couture. Pritzker-Prize-winning architects Herzog & de Meuron designed 11 11 Lincoln Road.
As Lustig sees it, the refi is an indication that some banks are getting back into the commercial real estate lending business. He is hopeful that the 11 11 Lincoln Road refi is the beginning of the credit markets unthawing, but, he adds, it’s too early to say that the capital markets have unlocked and that the floodgates of lending activity will open in the near future.
“I don’t know that this will set a standard because the property is very unique,” Lustig says. “I don’t know how many loans we’ll see of this size. It’s a fairly significant loan in the South Florida market, particularly since it was a bank loan, non-CMBS. I think we will start seeing banks making commercial real estate loans. Loans of this magnitude, though, will probably be few and far between.”
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