Walker & Dunlop arranged $140 million in loan proceeds to facilitate the refinancing of Soho Beach House, a private members club and hotel located in Miami Beach, FL.
Walker & Dunlop’s Jonathan Schwartz, Aaron Appel, Adam Schwartz, Keith Kurland, Ari Hirt, Triston Stegall and David Kasten were exclusive advisors to Beach House Owner, a subsidiary of Soho House & Co (SHCO), and brought in multiple financing options from investment banks, commercial banks, debt funds and life insurance companies. SHCO selected JPMorgan Chase Bank and Citi Real Estate Funding for a 10-year fixed-rate interest-only loan, which repaid the existing debt, repatriated equity, and covered financing and closing costs.
Situated in a 1940s tower overlooking Miami Beach, the club’s design is inspired by the city’s art deco and Cuban heritage, with a pool and ocean-facing rooftop among the highlights. The modernized seven-story main building includes 35 suites and has dedicated amenity space on the first three floors, while the 16-story beachfront tower offers 15 full-floor suites with wraparound private terraces and ocean views. Located in the heart of Mid-Beach, Soho Beach House is in proximity to downtown Miami as well as the Miami International Airport, Bal Harbour Shops and the Wynwood Arts and Design District.
“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,” Hirt, who is a managing director at Walker & Dunlop, said. “In this challenging capital markets environment, we thank JPMorgan and Citi for recognizing this outstanding opportunity.”
