Loan Modification for CityPlace, Refinancing Arranged for Gateway Centre

By Georgiana Mihaila, Associate Editor

The CityPlace mixed-use center managed to dodge foreclosure as Stephen Ross—owner of the Miami Dolphins—agreed to a modified mortgage. According to the South Florida Business Journal, back in September, a commercial mortgage-backed securities trust with Miami Beach-based LNR Partners as the special servicer filed a foreclosure lawsuit against CityPlace Retail LLC over a $150 million mortgage. The Business Journal reports that because the revenue from CityPlace was not enough to make mortgage payments by itself, the mixed-use center stopped making payments on its 6.27 percent interest rate loan in April.

The terms of the new mortgage have not been released, but apparently the loan has been split into a $100 million “tranche A” and a $50 million “tranche B” with lower monthly payments; additionally, the maturity of the mortgage has also been extended to December 11, 2018. The 756,471-square-foot CityPlace center serves as home to Macy’s and Barnes & Noble, but it also has office and residential components.

Aztec Group Inc. has also made an official announcement this week, following its arrangement of a $6,412,500 refinancing for Gateway Center; the two-story, 37,024-square-foot property anchored by Bonefish Mac Restaurant and One Investment Group is located at 2000 East Sample Road.

According to an official release, due to the fact that the property was originally acquired in January 2008 with financing provided by the now defunct Washington Mutual, the underlying note and mortgage have been sold several times since the acquisition, leading to the discounted payoff.

Aztec Group’s Howard Taft, senior managing director and Charles Penan, director, have secured $6,412,500 in DPO financing for the property, provided by BankUnited. Terms of the five-year facility include a 75 percent loan-to-value ratio, 25-year amortization schedule and a LIBOR-based floating interest rate.