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CBL Takes Out $81M Construction Loan With $118M Financing

MYRTLE BEACH, SC-CBL & Associates of Chattanooga, TN pays off its short-term, variable-rate loan for developing the 902,000-sf Coastal Grand-Myrtle Beach regional mall here and takes out some equity as well.

By Brian K. Miller | Updated on September 21, 2004

MYRTLE BEACH, SC-Owners of the 902,000-sf Coastal Grand-Myrtle Beach regional mall have paid off their $81-million short-term, variable-rate construction loan with a long-term, $118-million fixed-rate financing. The retail property is owned by a 50-50 joint venture of CBL & Associates of Chattanooga, TN and locally based Burroughs & Chapin Co. Inc.The loan is comprised of a 10-year, $100 million A-Note with an interest rate of 5.09% and two 10-year, $9-million B-Notes with an interest rate of 7.75%. The joint venture partners hold the B-Notes. A source at CBL tells GlobeSt.com that the lender was Wachovia.Most of the loan proceeds will be used to retire the construction loan, which had a variable interest rate of 165 basis points over LIBOR and was due to mature on May 29, 2006. The $37 million in excess loan funds is equity that is being recaptured as opposed to funds for additional development at Coastal Grand, according to the source.Burroughs & Chapin is a privately held company involved in amusements and attractions, recreation, residential and resort property development, commercial property development, property management and agriculture. CBL & Associates is one of the top five owners of shopping centers in North America and the largest owner of malls and shopping centers in the Southeast, ranked by GLA owned. CBL owns, holds interests in or manages 167 properties, including 67 enclosed regional malls, totaling 69.4 million sf.

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