Pensam Issues $30M Loan for Mixed-Use Building in Miami's Design District
The Design 41 office-retail building was completed last year, and part of the loan pays off the original debt.
A new Miami retail-office building with floor-to-ceiling windows on some floors got a $30 million loan to help repay debt and prepare space for new tenants.
The seven-story Design 41 was completed last year, becoming the latest addition to the edgy Design District known for its art and high-end retailers.
Pensam Capital LLC affiliate Pensam Funding issued the loan to building developer and owner Design District Development Partners LLC, led by Benjamin Norton, on Aug. 27.
Pensam Capital is a Miami-based alternative investment and asset management company with several affiliates focusing on U.S. commercial and residential ventures, according to its LinkedIn page. Pensam Funding is a lender, and Pensam Residential has a multifamily portfolio of 35,000 units.
The Design 41 loan illustrates Pensam’s role in the region.
“This loan is representative of our focus on supporting local real estate sponsors in South Florida, and our ability to create uniquely flexible financing solutions across all asset types that meet our client’s needs,” Ray Cleeman, Pensam Funding principal and head of capital markets, said in a news release.
The bridge loan will help pay off a $28 million loan and build out some of the tenant units. Terms were not disclosed.
The 48,000-square-foot Design 41 is west of the Florida East Coast Railway tracks on the southeast corner of Northeast 41st Street and First Avenue at 112 NE 41st St.
By the end of October, the retail occupancy was 58% with three signed tenants, and office occupancy was 68% with four signed tenants. Office space is available on the fourth floor and part of the fifth floor. The offices have access to balconies and terraces.
Some of the ground-floor retail tenants are Bond No. 9 fragrance store and Miami-based art dealer Inigo Philbrick. Upper-floor tenants include couture wedding dress and luxury apparel retailer Galia Lahav and an office for New York-based investment company HPS Investment Partners LLC.
“This is a trophy asset with tremendous upside potential located in one of the most desirable neighborhoods in Miami,” Cleeman said.