MIAMI-Capmark Bank has closed on the sale of the senior promissory note secured by the Omni Center and Hilton Miami Downtown. The note sale was worth $100 million. The note had a principal balance of $161 million, and represented approximately 78% of the total senior mortgage balance of $206 million.
Jones Lang LaSalle managing directors Jubeen Vaghefi and Denny St. Romain and JLL Hotels executive VP Gregory Rumpel arranged the sale for Capmark Bank. A joint venture between the Related Group of Florida, Tate Capital Real Estate Solutions and ROK Acquisitions purchased the note for the office, retail and hotel mixed-use complex located in downtown Miami.
“It’s a note secured by 14 acres of prime, downtown real estate in downtown Miami, located just blocks from the American Airlines Arena,” says Vaghefi. “This is a key transaction in Miami, particularly given the new developments that have just been approved in the surrounding area, including a 35-story, $78 million Sonesta Mikado hotel.”
The Omni Center and 527-room Hilton Miami Downtown are located along Biscayne Boulevard, just north of Miami’s Central Business District. The urban complex offers about 1.5 million square feet of office, retail and hotel as well as a 2,700-space parking garage. Since 2008, the property has undergone about $66 million in capital improvements, including $26 million in the hotel and $40 million in the office. The total capital stack on the property included equity and an additional junior note position, which was not included in the sale.
“This area of downtown Miami changed through the last cycle,” St. Romain tells GlobeSt.com. “If you step back five or six years ago in terms of the population, retail, entertainment ventures, it’s a lot different today. It’s a redeveloping area of Miami, and there are future development opportunities that come with this note sale as well as in-place cash flows.”
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