Terra Secures $291 Million Refinancing for Miami's Centro City Mixed-Use Development

In a significant move for Miami's real estate landscape, Terra, under the leadership of David Martin, has secured $291 million in refinancing for the first phase of Centro City, a 38-acre mixed-use development situated just west of Little Havana. This strategic financing is poised to bolster the project's growth and enhance its offerings to the community.

Project Overview

Centro City is set to transform an existing shopping center into a vibrant, community-centered mixed-use destination. The development plan includes the construction of 1,188 apartment units and a charter school, all integrated with flagship retail stores such as Target, Fresco y Más, and Walgreens. The site is strategically located at the northwest corner of NW 7th Street and NW 37th Avenue, directly across from the historic Magic City Casino, and less than two blocks from the 836 Expressway, positioning it at the epicenter of Miami’s next "renaissance" neighborhood.

Financing Details

The refinancing package comprises two substantial loans:

• $187 Million Loan: Provided by JVP Management, this loan is secured by three eight-story buildings housing 470 market-rate apartment units. The apartments, designed by Arquitectonica, offer a mix of studios, one-, and two-bedroom units ranging from 500 to 1,250 square feet. Monthly rents for these units start at $2,500.

• $104 Million Loan: Offered by Hudson Bay Capital, this loan is designated for Centro City Plaza, a 350,000-square-foot retail center that has undergone significant renovations and expansions. The center is now 95% leased, featuring tenants such as Target, Ross Dress for Less, DD’s, Fresco y Más, Walgreens, and Bank of America. The revitalization includes a new facade, enhanced common areas, updated landscaping, and modern signage.

Development Timeline and Future Plans

The first phase of Centro City has been completed, with tenants expected to begin moving into the residential units in March 2025. Looking ahead, Terra plans to break ground on the second phase, which will add 518 additional apartment units, later this year. Upon completion, the entire development will encompass 1,200 apartment units, a shopping center, a new office building, and a charter school, further solidifying its role as a central hub in the community.

Strategic Location and Community Impact

Situated just west of Little Havana, Centro City is poised to play a pivotal role in the area's revitalization. The development's proximity to major business districts and its location across from the historic Magic City Casino position it as a catalyst for economic growth and community engagement. The integration of residential, retail, and educational components aims to create a dynamic environment that meets the diverse needs of residents and visitors alike.

Insights

What is the significance of the $291 million refinancing for Terra's Centro City project?

The $291 million refinancing is a strategic move that provides Terra with the necessary capital to pay off previous construction financing and support the continued development of Centro City. This financial stability enables the project to proceed with its planned expansions and enhancements, ensuring its success and sustainability.

How does the refinancing impact the timeline for tenant occupancy?

With the refinancing in place, Terra is well-positioned to meet its projected timeline for tenant occupancy. The first residential units are expected to be ready for move-in by March 2025, allowing residents to enjoy the newly completed amenities and facilities.

What role does the strategic location of Centro City play in its development?

Centro City's location just west of Little Havana is a key factor in its development strategy. Being adjacent to the historic Magic City Casino and close to major business districts positions the project as a central hub for economic activity and community engagement, attracting both residents and businesses to the area.

What are the future plans for the second phase of Centro City?

The second phase of Centro City is slated to add 518 additional apartment units, further expanding the residential offerings. This phase also includes the development of a new office building and a charter school, enhancing the mixed-use nature of the project and providing a comprehensive living experience for residents.

How does the refinancing align with Terra's broader development strategy?

The refinancing aligns with Terra's broader strategy of securing substantial financing to support large-scale mixed-use developments. This approach enables Terra to undertake ambitious projects that contribute to urban revitalization and meet the evolving needs of communities.

Conclusion

Terra's successful acquisition of $291 million in refinancing for the first phase of Centro City underscores the project's significant role in Miami's urban development. With its strategic location, comprehensive amenities, and commitment to community integration, Centro City is poised to become a cornerstone of the West Little Havana neighborhood, offering a dynamic living experience that blends residential comfort with retail convenience and educational opportunities.