U.S. Markets close in 2 hrs 23 mins

Barneys New York heading to Miami's Bal Harbour Shops after $550 million in financing secured

Tonya Garcia

Commercial real estate provider Holliday Fenoglio Fowler, L.P. (HFF) said Friday that it has arranged $550 million in financing to expand luxury retail destination Bal Harbour Shops and bring Barneys New York to Miami. The loan proceeds will be used to retire an existing loan and build out an additional 300,000 square feet at Bal Harbour Shops. Barneys will occupy 57,414 square feet of that space. It will be the only Barneys flagship in the southeastern U.S. The expansion will also include an additional 20,000 square feet for the existing Neiman Marcus. Bal Harbour Shops has operated at 100% occupancy for decades with a waiting list, according to the announcement. HFF also says the loan is one of the largest construction loans ever for the city. The ProShares Decline of the Retail Store ETF is up nearly 2% for the year to date, the Amplify Online Retail ETF has gained 26.1%, and the S&P 500 index is up nearly 20% for the period.