Terra, Grass River Score $245M Refi for Grove Central

Terra and Grass River secured a $245 million refinancing for Grove Central, a mixed-use retail and apartment project they recently completed in Miami’s Coconut Grove.

J.P. Morgan provided the permanent debt for Grove Central, replacing a $204.5 million construction loan Apollo Global Management provided in 2021, according to a spokesperson for the developers. The project was built next to the Coconut Grove Metrorail Station at the northwest corner of U.S. 1 and Southwest 27th Avenue. It was completed late last year.

Grove Central includes a 23-story, 402-unit apartment tower with workforce and market-rate units, 170,000 square feet of retail space and a 1,250-space parking garage. The retail is anchored by Target, Sprouts Farmers Market, Total Wine & more, Five Below and other tenants.

David Martin, CEO of Terra, said in a statement that the ability of Terra and Grass River to secure “favorable” long-term debt is reflective of the demand for transit-oriented developments in South Florida. The project was built via a public-private partnership. Miami-Dade County owns the land.

The new loan will also fund the remaining public infrastructure improvements and upgrades to the Metrorail station, according to a release.

Keith Kurland of Walker & Dunlop represented the developers in the financing.

The apartment component is more than 30 percent leased, according to the release. Units range from 400-square-foot studios to 2,170-square-foot five-bedroom apartments. The retail is more than 95 percent leased.

High interest rates, fewer lenders and lenders that are willing to provide less financing than before have made for a challenging financial market for developers. Still, condo developers with strong presales have been able to lock down large loans in recent months.

In January, Chip Abele’s GCF Development landed a $133.5 million refinancing for a completed mixed-use project in downtown Hollywood, in Broward County.