Morgan Group and Carlyle Group landed a $67 million loan for the redevelopment of a closed Macy’s and adjacent lot in Pompano Beach, where the developers plan a 356-unit apartment complex.
The nearly 12-acre property consists of the Macy’s building at 1200 Northeast 12th Street within the Pompano Beach Citi Centre open-air mall, and a parking lot immediately to the south. Houston-based Morgan and Washington, D.C.-based Carlyle borrowed the funds from Santander Bank, according to records.
The loan comes less than a month after the pair bought the site in two deals for a combined $18.8 million. New York-based Macy’s sold its building for $10 million, and West Palm Beach-based Sterling Organization sold the parking lot for $8.8 million.
Morgan and Carlyle plan eight four-story buildings and 545 parking spaces. In 2021, the Pompano Beach City Commission approved the project.
Led by CEO Philip Morgan, Morgan is a multifamily developer and investor with a portfolio of more than 18,500 units across 65 complexes nationwide, according to its website. In Sunrise, Morgan scored approval last year for the Caroline at Sunrise complex with 412 apartments, including 68 affordable, and 40 townhomes at 3363 North Pine Island Road.
Carlyle, led by CEO Harvey Schwartz, has $435 billion in assets under management, its website shows. In 2021, the firm divested two South Florida properties. It sold the 481-key B Ocean Resort Fort Lauderdale and adjacent parking lot for $126.9 million. Carlyle aso sold the superyacht storage and repair facility at 2029 Southwest 20th Street in Fort Lauderdale for $340 million.
In February, Macy’s announced planned closures of 150 underperforming stores nationwide in the next three years. The department store has been selling some of its outposts in South Florida. In July, Macy’s sold its Pinecrest furniture store at 13251 South Dixie Highway for $40 million to the University of Miami, which could use the site to expand its health care network. That came on the heels of Macy’s selling its furniture store at 9339 Glades Road in Boca Raton in February for $23.5 million.
