MIAMI BEACH, FLA. — Walker & Dunlop Inc. has arranged a $140 million loan for the refinancing of Soho Beach House, a private members club and hotel in Miami Beach. Located along Collins Avenue, the property includes a seven-story main building with 35 suites and amenities and a 16-story beachfront tower comprising 15 full-floor suites.
JPMorgan Chase Bank NA and Citi Real Estate Funding Inc. provided the 10-year, fixed-rate, interest-only loan. The borrower, an affiliate of global private members social club Soho House & Co. (SHCO), is using the proceeds to repay existing debt, repatriate equity and cover financing and closing costs.
Jonathan Schwartz, Aaron Appel, Adam Schwartz, Keith Kurland, Ari Hirt, Triston Stegall and David Kasten of Walker & Dunlop arranged the loan. The team brought in numerous financing options for the borrower, an entity doing business as Beach House Owner LLC, which ultimately chose the loan package from JPMorgan Chase and Citi.
“We were able to differentiate Soho Beach House as a marquee asset given the sustainability of its highly recurring membership revenue model and the impressive profitability of the asset through the cycle,” says Hirt, managing director at Walker & Dunlop. “In this challenging capital markets environment, we thank JPMorgan and Citi for recognizing this outstanding opportunity.”
Situated in a 1940s tower overlooking Miami Beach, Soho Beach House’s design is inspired by the city’s Art Deco and Cuban heritage, with a pool and ocean-facing rooftop among the highlights. The main building features dedicated amenity space on the first three floors, and the beachfront tower offers wrap-around private terraces and ocean views for all 15 residential floors. The club includes Italian eatery Cecconi’s, which is located in the courtyard and is open to the public.
Located in the heart of Mid-Beach, Soho Beach House is in proximity to South Beach and the famous Lincoln Road, as well as downtown Miami, Miami International Airport, Bal Harbour Shops and Miami’s Wynwood Arts and Design District.
— John Nelson