Terra refinances Well office in Bay Harbor Islands with $183.8M Monroe loan

Terra has secured a $183.8 million refinancing from Monroe Capital on the 96,000-square-foot office component of the Well in Bay Harbor Islands, Fla., a four-story building at 1177 Kane Concourse completed this summer. Commercial Observer first reported the loan.

The new debt retires a $238 million refinancing from Eldridge Capital Management and Hudson Bay issued last year, according to a representative for the Miami-based developer led by David Martin. The replacement is $54.2 million smaller, about 23 percent below the balance it takes out.

Tenants include Dwight Capital, NewCo Capital Group, Legacy Wealth Advisors and TEB Capital Management, Tom Brady's family office, which signed for 8,145 square feet. The Class A complex is 90 percent leased, and amenities include a gym, a spa, health coaching and concierge services.

The $183.8 million works out to roughly $1,915 per square foot on the 96,000-square-foot building, or about $2,127 per occupied foot at 90 percent leased.

"The strong leasing momentum and differentiated wellness-focused concept at the Well Bay Harbor Islands created an opportunity to structure a refinancing that aligned with Terra's long-term objectives," said Walker & Dunlop's Keith Kurland, who brokered the financing on Terra's behalf.

Terra paid $31.6 million for the 1.8-acre site in 2021 and took out a $141 million construction loan a year later from Mack Real Estate Credit Strategies. The Well also includes an eight-story building with 65 condo units alongside the office component Monroe financed.

The refinancing lands about a week after Terra secured $507 million to build a luxury condo tower in South Beach before launching sales.

Countywide, Savills data cited in our Oct. 5 coverage put Miami-Dade office asking rents up 8.4 percent while leasing slipped to 1.1 million square feet. A recent comparison is Corebridge's $180 million takeout for FIU's 2024-delivered building, where a permanent loan went to a 98-percent-leased asset with cash returned to the sponsors.