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Mills Affiliates Refinancing Mall Debt

SUNRISE, FL-Affiliates of the Virginia-based real estate investment trust are borrowing $472 million underwritten by Morgan Stanley and Goldman Sachs on the 2.1 million-sf Sawgrass Mills retail center in this southwest Broward County community, 26 miles north of Miami.

By David R. Corder | Updated on July 12, 2001

SUNRISE, FL-Affiliates of Mills Corp. expect to close July 31 on a $472 million refinancing of the 2.1 million-sf Sawgrass Mills mall. The Arlington, VA-based real estate investment trust is issuing commercial mortgage pass-through certificates underwritten by Morgan Stanley and Goldman, Sachs, with Morgan Stanley Dean Witter Capital I Inc. selling the asset-backed securities.

In exchange, the REIT is committing to first mortgage liens and the assignment of rents and leases. The refinancing is part of a larger corporate strategy undertaken this year by the REIT to refinance certain properties in its portfolio and to raise additional capital.

Under terms of the loan agreement, the transaction is secured by three cross-collateralized and cross-defaulted first-mortgage liens on the mall and an assignment of rents and leases. Monthly debt service payments are fixed at an annual interest rate of 7.18% on a 30-year amortization.

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