Fontainebleau Development Secures $1.2 Billion Refinancing for Iconic Miami Beach Resort
Fontainebleau Development, a leading real estate and hospitality group, has secured a significant refinancing deal for its iconic Fontainebleau Miami Beach hotel. The company has lined up a $1.2 billion refinancing package, which includes a $975 million loan and $210 million in mezzanine financing provided by Goldman Sachs and JPMorgan Chase. Additionally, Fontainebleau Development will contribute $94.4 million to the deal[2].
This new financing arrangement is intended to refinance existing commercial mortgage-backed securities (CMBS) and mezzanine debt of $1.2 billion that is due this month. The loan has an initial two-year term and will accrue interest at the benchmark Secured Overnight Financing Rate (SOFR) plus an additional 2.62% after Fontainebleau Development purchases an interest rate cap.
The Fontainebleau Miami Beach resort was appraised at $1.72 billion for the new financing arrangement, up from $1.66 billion in 2019 when the property was last financed. This deal marks a significant milestone in the hospitality debt market, pushing the volume of securitized hospitality debt issued in 2024 past $24 billion, a 185% increase over the $8.4 billion issued last year.
The refinancing was arranged by Newmark’s global debt and structured finance team, including Co-Presidents Jordan Roeschlaub and Jonathan Firestone, Vice Chairman Nick Scribani, Managing Director Tyler Dumon, and Director John Caraviello.
Fontainebleau Development, known for its extensive portfolio of luxury properties and entertainment destinations, has a proven track record of transforming ordinary spaces into extraordinary experiences. With over 50 years of experience, the company has expanded its scope beyond residential and commercial real estate to create iconic hospitality landmarks and luxury brands[1][5].
The company’s commitment to innovation and quality is evident in its diverse portfolio, which includes the JW Marriott Turnberry Resort & Spa, Turnberry Ocean Club Residences, and the Fontainebleau Miami Beach itself. Fontainebleau Development’s vertically integrated approach ensures cost and process control, instilling efficiency and quality while allowing for competitive differentiation[1].
This refinancing deal underscores Fontainebleau Development’s ability to secure significant funding for its projects, reflecting its reputation as a premier real estate and hospitality group. The company’s dedication to creating world-class experiences and its strategic approach to development have positioned it as a leader in the industry.
The new financing arrangement not only highlights Fontainebleau Development’s financial strength but also its commitment to continuous growth and innovation. With this deal, the company is poised to continue shaping communities and lifestyles for the future, leveraging its expertise and resources to deliver stunning, cutting-edge results.
In conclusion, Fontainebleau Development’s $1.2 billion refinancing deal for the Fontainebleau Miami Beach hotel is a testament to the company’s financial prowess and its ability to secure significant funding for its projects. The deal marks a significant milestone in the hospitality debt market and underscores Fontainebleau Development’s position as a leading real estate and hospitality group.