On the matter of loan maturities, Rouse Properties Inc. can check 2013 off its list. The REIT just completed the $65 million refinancing of the 883,300-square-foot Lakeland Square Mall in Lakeland, Fla., thereby repaying its only loan scheduled to mature this year.
More time, lower interest rate. The new non-recourse loan on Lakeland Square comes with a maturity date in 2023 and a 4.17 percent fixed rate, compared to the 5.12 percent fixed rate attached to the previous $50.3 million mortgage loan.
“The refinancing of Lakeland Square Mall demonstrates Rouse’s ability to utilize its platform and strategic capital to capture the inherent value that exists throughout our portfolio,” Andrew Silberfein, president and CEO of Rouse Properties, said in a prepared statement. The REIT pocketed net proceeds totaling $13.4 million on the transaction.
Sited along the I-4 corridor, roughly 35 miles east of Tampa, the single-story Lakeland Square carries the distinction of being the only enclosed regional mall within a 30-mile radius. The property is presently 90.5 percent leased and offers a list of anchors that includes Macy’s, Dillard’s, JCPenney, Sears and Burlington Coat Factory. Rouse is in the midst of reconfiguring the property to accommodate two recently completed lease deals that will bring a 47,000-square-foot Cinemark NestGen digital movie theater and a 42,000-square-foot Sports Authority to the 25-year-old mall.
With 2013′s expiring property debt now erased, Rouse can focus on 2014, when loans with balances totaling approximately $235 million on four shopping malls are due.