J
effrey Soffer's Fontainebleau Development is seeking to raise $1.2 billion through a bond sale to refinance its Miami Beach resort. The plan involves issuing commercial mortgage-backed securities worth $975 million and a mezzanine loan of around $225 million, with Goldman Sachs Group Inc. and JPMorgan Chase & Co. leading the proposed sale.
Soffer is expected to contribute approximately $105 million in equity, bringing the total investment to $1.3 billion. The funds will be used to refinance an existing $1.2 billion debt obtained in 2019 for the resort, as well as a $75 million construction loan secured last year for a new events center.
The Fontainebleau Miami Beach resort, located on over 15 acres at 4441 Collins Avenue, features a Morris Lapidus-designed building from 1954 and three additional towers. The property includes 11 pools, a 40,000-square-foot spa, and 12 food and beverage venues.
Turnberry Associates, the Soffer family's firm, acquired the resort in 2005 for $325 million before investing an additional $650 million on renovations. In 2019, Jeffrey Soffer and his sister Jackie split their real estate holdings into two companies, with Jackie becoming CEO of Turnberry Associates and Jeffrey leading Fontainebleau Development.
The company has various projects underway, including a partnership to develop the Miami Beach Convention Center hotel, and owns several notable properties in South Florida, such as the JW Marriott Miami Turnberry Resort & Spa and the Turnberry Ocean Club Residences.
