Terra obtains $230M construction loan for mixed-use Miami project

Terra secured a $230 million construction loan for a mixed-use project in Miami that will include a new Target store.

Apollo Global Management and Mack Real Estate Credit Strategies provided a mortgage to the Miami-based developer for the first phase of the 38.4-acre property at 3800 N.W. 11th St., 3899 N.W. Seventh St., and 901 N.W. 39th Ave.

The property was acquired for $28.6 million in 2021. At the time, it had a 301,806-square-foot retail center that was built in 1959. Terra will upgrade the retail center and build 8-story apartment buildings behind the retail in several stages.

The first phase of CentroCity will consist of 350,000 square feet of renovated and newly built retail, plus 470 apartments in three buildings and a Mater Academy charter school for grades K-8. In addition to a 100,000-square-foot Target, tenants will include Ross Dress for Less, DD’s, Fresco Y Mas, Walgreens, and Bank of America. Terra said the retail space is 95% leased.

Construction recently started and is expected to be completed in 2024.

“Our ability to secure favorable construction financing for CentroCity speaks to the growing demand for low-impact infill development that will enhance an underutilized asset and make it a more positive contributor to the community while bringing much needed market-rate housing to the area,” Terra CEO David Martin said. “CentroCity will bring this vision to life, creating a true pedestrian friendly mixed-use village in the center of Miami and a catalyst for future investment.”

RSP Architects in Miami designed the retail and Miami-based Arquitectonica designed the apartments. The units will range from 500 to 1,250 square feet, and amenities will include several pool decks, a playground, a dog park, game rooms and lounges.

More apartments are planned for the future phase, as the city approved the site for up to 1,200 units.

This is part of a trend across South Florida where underutilized shopping centers are being partially redevelopment with multifamily uses. Since rents have increased a record rates, that has made apartment development more profitable. Having residents living at the shopping center often helps the tenants attract more customers.

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