Simon Property Group Lines Up $555M CMBS Refinancing for Dadeland Mall

Simon Property Group and Prime Property Fund are close to finalizing a $555 million commercial mortgage-backed securities package to refinance Dadeland Mall in suburban Miami-Dade County. Wells Fargo, Bank of Montreal and J.P. Morgan Chase Bank are originating a 10-year, fixed-rate, interest-only loan, according to Fitch Ratings.

Fitch valued the 1.5 million-square-foot indoor mall at $909 million using a 7 percent capitalization rate. The transaction is expected to close December 3. It will retire $345 million of existing debt, return just under $200 million of equity to the sponsors, cover $5.7 million in landlord obligations and pay $4.5 million in closing costs.

The property at 7535 North Kendall Drive produced $66.4 million in net operating income over the 12 months through September 2026, up from $61.6 million the prior year. Tenant sales reached roughly $892 million over the past year, led by Apple, Macy's and Saks Fifth Avenue. The center was nearly fully occupied in September, and owners have spent $82.5 million on renovations over the past decade.

Simon has been expanding its South Florida holdings, buying the Brickell City Centre mall in Miami for $512 million last year and filing plans this year to redevelop a shuttered Sears at its Boca Raton mall. Simon did not immediately comment.

For developers and lenders, the deal signals strong institutional appetite for high-performing enclosed malls, with a valuation and financing structure that depends on sustained tenant sales.