Terra Secures $291M Permanent Debt for New Mixed-Use Campus Near MIA
By Julia Echikson January 3, 2025 10:46 am
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South Florida developer Terra has secured a $291 million permanent financing package for the first phase of the newly completed Centro City mixed-use development near Miami International Airport, the developer announced.
The first phase, which was completed this year, consists of 350,000 square feet of new and revamped retail space as well as three eight-story multifamily buildings, housing 470 market-rate apartments in total.
The debt includes a $187 million loan from JVP Management for the residential component and a $104 million loan from Hudson Bay Capital for the retail component. The financing will pay off a $230 million construction loan from Apollo Global Management and Mack Real Estate Credit Strategies that was issued in 2022.
Walker & Dunlop’s Keith Kurland, Jonathan Schwartz, Aaron Appel and Adam Schwartz and Gangemi Law Group represented Terra in the transactions. Holland & Knight partners Joe Dewey, Brett Holland, Shawn Amuial, Shaina Kamen and Brian Piper represented Hudson Bay Capital.
In 2020, Terra, led by David Martin, paid $28.6 million for a stake in the 38-acre site west of Little Havana at 3701 NW Seventh Street, about two miles southeast of the airport, according to property records.
Leasing for the residential component is underway. Residents are expected to move into the apartments, which range between 500 and 1,250 square feet, in March. Prices start at $2,500 a month.
The retail component, which includes the redevelopment of the property’s existing central shopping plaza, is 95 percent leased. Tenants include Target, which operates a 100,000-square-foot store, as well as Ross Dress for Less, DD’s, Fresco Y Mas, Walgreens, and Bank of America.
The second phase of Centro City, which will feature 518 apartments, is expected to start this year. The campus will also include a Class A office building, a Mater Academy K-8 Charter School and 1,200 residential units in total.
The permanent financing comes as Terra embarks on another mixed-use campus in Miami-Dade County. Last month, the Miami-based developer nabbed a $170 million construction loan for the first phase of The Upland Park, which will include 578 apartments.
Last year, Terra obtained $245 million in permanent financing for another mixed-use property, Grove Central, which is attached to the Coconut Grove Metrorail station.
Julia Echikson can be reached at jechikson@commercialobserver.com.
