MIAMI BEACH, FL-Locally based Denison LLC has secured a $14-million refinance loan for its 30,110-square-foot retail/office property on the popular Lincoln Road retail corridor. Miami-based Absolut Financial Resources Inc. arranged the loan between the long-term owner and the Atlanta office of Prudential Financial. Terms include a floating rate based on Libor, a three-year bridge and interest only with an extension option.


"Currently, market conditions are difficult. However, borrowers are still in need of financing and we are still closing loans," Jose Guillen, president of Absolut Financial, tells GlobeSt.com. "Getting financing takes working very close with your borrower to reach the comfort zones that lenders require in today's financial world."

The refinanced property includes a 26-spot parking lot, 14,600 square feet of credit retail space and 15,500 square feet of office located at 546-560 Lincoln Road. The building is currently 95% occupied with tenants including Guess, Ricky's Drug Store, So Good Jewelry and L'Occitaine. Originally built in 1929 for a Cadillac dealership, the property was purchased by the key principal behind Denison LLC, Robert Quittner, in the 1940s and was completely renovated in 2002.

According to Drew Kristol, senior associate member of the Marcus & Millichap national retail group in Miami, the transaction is proof that lenders are still writing loans based on the financial strength of tenants and their sales figures. "Also, Lincoln Road remains a highly desirable street where rents are still escalating," he tells GlobeSt.com, adding that there hasn't been a serious spike in vacancy on the pedestrian corridor.

Rents there are also among the highest in Miami-Dade County. Office leasing rates at the refinanced property range between $25 and $40 per square foot, while the retail rates range from $82 to $114 per square foot, reports Guillen.

"Tenants will pay extra money because they want the exposure on Lincoln Road," says Kristol. "It has maintained its position as one of the country's top 10 retail corridors and is still a destination where foreigners and vacationers come to shop."