CP Group venture borrows $271.5M from Blackstone for Mizner Park

A joint venture led by CP Group borrowed $271.5 million from Blackstone Real Estate Debt Strategies to buy and renovate Mizner Park, the 30-acre mixed-use complex in downtown Boca Raton, Fla., according to Commercial Observer, which cited property records. The venture paid $193 million for the 838,840-square-foot property, leaving $78.5 million of the loan expected to fund renovations.

For debt allocators, the $271.5 million loan equals about 141% of the $193 million purchase price, putting the lending basis on the finished renovation rather than the in-place asset. The renovation budget was not disclosed, so the all-in loan-to-value cannot be computed from public records.

Mizner Park holds 268,391 square feet of office, 276,461 square feet of retail and 272 apartments. Palm Beach County filings allocate $113.1 million of the purchase price to retail, $46.3 million to the apartments and $33.5 million to the office.

CP Group developed Mizner Park between 1991 and 1999 on land the city owns. Brookfield, the previous lessee, took control in 2018 through its $9 billion acquisition of General Growth Properties. CP Group and partners Georgetown Company, Acre and StepStone gained control last week through ground leases. The surplus loan proceeds will likely pay for facade, landscaping, back-of-house and office common-area upgrades; Acre will oversee the apartment component and its renovation.

BXMT, Blackstone's listed mortgage REIT, cut its quarterly payout 36% this week, as Private Wealth Daily previously reported.