Miami's Terra Group Bags $91 Million Refinancing for Pembroke Pines Project
The Pines Garden multifamily community is part of a sprawling, master-planned community that includes two other rental projects and 300,000 square feet of retail.
August 13, 2019 at 01:32 PM
5 minute read
A new apartment community in Pembroke Pines’ sprawling, mixed-use Pines City Center community bagged a $91 million refinancing.
The hefty deal speaks to both the demand for apartments in South Florida and the growth of suburban master-planned communities where residents can live near retail, dining, entertainment and offices. Developers essentially are recreating the coveted live-work-play lifestyle common in downtowns—but this time in suburban, less pedestrian-friendly areas west of Interstate 95 that used to be largely bedroom communities.
Terra Group LLC, a prolific Miami-based developer, built the Pines Garden multifamily community as part of the larger Pines City Center.
Pines City Center sits across 47 acres—roughly from Pines Boulevard south to Washington Street and from Palm Avenue west toward Hiatus Road—and includes retail, future hotels and three multifamily communities.
Terra’s Pines Garden, which has apartments and rental townhouses, is the last of the three multifamily projects at Pines City Center to open.
It sits at 10400 SW City Center Blvd., or the intersection of City Center Way and City Center Boulevard.
Terra, led by father-son team Pedro and David Martin, secured the $91 million on July 26.
The proceeds are to pay back construction lenders and equity investors in Pines Garden, and remaining funds will be used to finish the project and for operating reserves.
It’s unknown how much of the funds will go for which purpose. Terra declined to disclose the amount of the construction loans being paid off. It also didn’t disclose the total project cost.
The refinancing was secured through an affiliate of Mack Real Estate Group, a New York-based real estate investment and development firm.
Terra declined to disclose the interest rate and loan length.
The 387-unit Pines Garden is nearly finished, as 12 of the 16 buildings have a certificate of occupancy from the city, and the other four will get it this month.
Already, 40% of the units are leased, and 28% of those are occupied.
The quick lease-up isn’t surprising, given the high demand for rental homes in South Florida. Developers have been building apartment projects, both garden style like Pines Garden and stand-alone towers, to quench the thirst for multifamily housing.
The demand largely is fueled by the growing population and the high cost of buying a home that’s turning residents to rentals. South Florida expects a net population increase of 550,000 over the next five years, according to a Cushman & Wakefield report released in mid-2018.
This demand helped Terra close the refinancing.
“Our ability to close this significant loan reflects the early leasing success we’ve experienced at Pines Garden, the significant demand for luxury rentals in Pembroke Pines, as well as the strong relationship between Terra and Mack Real Estate Group,” said David Martin, the president of Terra.
The “luxury” aspect at Pines Garden comes in the top-notch amenities and high-end home finishes. The apartments have stainless steel appliances, quartz countertops, impact-resistant windows, high ceilings, custom cabinets and designer fixtures.
The community’s architecture is plantation inspired, and the landscaping is lush and reminiscent of a nature preserve.
There is a two-story clubhouse, a gym, a children’s playroom and game room, a pool, a coffee bar and co-working lounge, a dog park, a life-sized chess board, a tot lot and an outdoor cooking area.
Pines Garden offers one, two and three-bedroom apartments. The monthly rent for a one bedroom starts at $1,645, $1,795 for a two bedroom and $2,256 for a three.
The townhouses have either two or three bedrooms ranging from 651 to 1,491 square feet. The monthly rent for a townhouse ranges from $2,475 to $2,845.
Aside from the apartments, Terra also developed 300,000 square feet of retail at Pines City Center.
Publix anchors the retail, and some of the other tenants that already have leased space there are Cooper’s Hawk Winery & Restaurants, Outback Steakhouse, boating and fishing supply store West Marine, fast-casual restaurant BurgerFi, Smoothie King, Asian food restaurant Bento Cafe, The Halal Guys eatery and a movie theater.
Hotels with a total of 350 rooms also are envisioned as part of the project in the future.
The other two apartment developments at Pines City Center are the 700-unit City Center on 7th that sits on 27 acres and the 365-unit Town Pembroke Pines that sits on 11 acres.
Near Pines City Center, the city of Pembroke Pines recently completed the Charles F. Dodge City Center and Convention Hall with a 3,500-seat auditorium, art gallery and an open plaza.
Some of the other mixed-use projects recreating the live-work-play lifestyle in South Florida suburbs are the 4 million-square-foot Metropica west of Sawgrass Mills mall in Sunrise, the 250-acre Downtown Doral and the 27-acre Plantation Walk along University Drive in Plantation.
Unlike Pines City Center, they include offices and not just residences and retail.
Metropica will have eight residential towers and a seven-story office building. Plantation Walk will have 700 apartment units, 160,000 square feet of offices and 200,000 square feet of retail.
Downtown Doral is more of a mini city within West Miami-Dade County’s city of Doral. It has its own 3-acre park and charter elementary school. It also has condominium residences, 600,000 square feet of finished offices and another 400,000 in the pipeline, and The Shops at Downtown Doral retail center.
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