Simon Property Group and Prime Property Fund are on the verge of completing a substantial 555 million dollar financing package. The transaction is a commercial mortgage-backed securities (CMBS) loan to refinance Dadeland Mall in suburban Miami-Dade County, South Florida. Wells Fargo, Bank of Montreal, and J.P. Morgan Chase Bank are serving as lenders, providing a ten-year, fixed-rate, interest-only loan. Rating agency Fitch Ratings valued the approximately 1.5 million-square-foot shopping centre at a total value of 909 million dollars based on a capitalisation rate of 7 per cent.
Loan structure and use of proceeds
The transaction is scheduled to close on 3 December. The new loan will primarily be used to pay off existing debt of 345 million dollars. In addition, almost 200 million dollars in equity will be returned to the sponsors. The remaining funds are allocated to 5.7 million dollars for upcoming landlord obligations and roughly 4.5 million dollars to cover transaction and closing costs.
The earning power of the property at 7535 North Kendall Drive has recently proven robust. Last year, Dadeland Mall generated net operating income of 61.6 million dollars, which rose to 66.4 million dollars in the twelve-month period up to September 2026. Gross sales for the enclosed shopping centre reached 892 million dollars during the twelve-month period to August, driven significantly by several key tenants.
- —Apple achieved annual sales of 126 million dollars
- —Macy's generated 116 million dollars
- —Saks Fifth Avenue contributed 87 million dollars
- —Zara recorded revenue of 60 million dollars
Upgrading existing space and Florida expansion
The four-storey retail property brings together brands from across different market segments. Alongside concepts such as Skims, Aritzia, and Princess Polly, luxury labels including Salvatore Ferragamo and Dolce & Gabbana are represented. Over the past ten years, the owners have invested 82.5 million dollars in modernising the scheme, which was almost fully let at the time of assessment in September.
Indianapolis-based Simon Property Group is one of the largest shopping centre operators in the United States and has noticeably stepped up its activity in South Florida of late. Last year, the group acquired the 500,000-square-foot shopping centre at Brickell City Centre in Miami for 512 million dollars. In addition, the company submitted plans for the expansion of a 1.7 million-square-foot centre in Boca Raton, where a shuttered Sears department store is set to be redeveloped.
