Simon Property Group and Prime Property Fund are closing in on a $555 million CMBS refinance for Dadeland Mall in suburban Miami-Dade County. Wells Fargo, Bank of Montreal, and J.P. Morgan Chase Bank are originating the 10-year, fixed-rate, interest-only loan, according to Fitch Ratings. The deal is expected to close Dec. 3.
Fitch valued the 1.5 million-square-foot mall at $909 million, using a 7 percent cap rate. The refinance will pay off $345 million in existing debt and return just under $200 million in equity to the sponsors. It will also fund $5.7 million in landlord obligations and $4.5 million in closing costs.
Dadeland Mall generated $61.6 million in net operating income last year and $66.4 million in the 12 months through September 2026. Over the past year through August, the center produced $892 million in total sales. Apple accounted for $126 million, Macy's for $116 million, Saks Fifth Avenue for $87 million, and Zara for $60 million. The mall houses tenants including Skims, Aritzia, Princess Polly, Salvatore Ferragamo, and Dolce & Gabbana. The asset was nearly fully occupied in September.
Owners have invested $82.5 million over the past decade to renovate the four-story retail center. Simon Property Group, based in Indianapolis, bought the 500,000-square-foot Brickell City Centre mall in Miami for $512 million last year. This year, the company filed plans to expand its 1.7 million-square-foot indoor mall in Boca Raton by redeveloping a nearby shuttered Sears.