Witkoff, Monroe Capital Secure $302M for Miami Worldcenter Tower

A joint venture between Witkoff and Monroe Capital has successfully closed on a $302.6 million construction loan to facilitate the development of a major multifamily tower in Downtown Miami. According to property records, the financing will support the construction of a high-rise located at 700 North Miami Avenue, positioned strategically between the MiamiCentral station and the expansive Miami Worldcenter development.

The planned tower is expected to yield approximately 890 residential units alongside 15,000 square feet of ground-floor retail space. This specific structure constitutes the initial phase of a broader mixed-use master plan. In 2022, the partnership filed plans outlining a vision for three towers encompassing 2,195 residential units, 540,000 square feet of office space, and 50,000 square feet of retail.

Financing for the project was structured through existing lenders. Athene Annuity and Life Company, an affiliate of Apollo Global Management, and J.P. Morgan Chase provided the capital. The lenders recapitalized an existing position, taking on a loan with $57.3 million in outstanding debt and increasing it by $245.3 million.

The site, formerly home to the Miami Arena where the NBA’s Miami Heat played until 2008, was acquired by the joint venture in 2021 for $94 million. The 4.7-acre parcel has remained vacant since the arena’s demolition. This Miami project adds to the growing portfolio of collaborations between Witkoff and Monroe Capital, who are also developing the Shore Club luxury condos in Miami Beach.

While the developers move forward with construction, the broader real estate services sector continues to experience market fluctuations. JLL (Jones Lang LaSalle Incorporated), a key player in commercial real estate and investment management, is currently trading at $325.53, reflecting a decline of 1.39% from the previous close.

What to watch

• Progress on the first phase of the Miami Worldcenter tower construction.
• Future filings regarding the subsequent phases of the three-tower master plan.
• Market activity in the Downtown Miami rental sector as new inventory enters.

Source: original release