The interest-only loan has a rate of Libor plus 1.5%, according to information released by Vornado this week. It matures in March 2011 with two one-year extension options. The source of the funding was not released.
The mall area subject to the loan totals approximately 950,000 sf, with about 40% of that leased to anchors Century 21, Whole Foods and Target, according to a spokesman. Vornado also plans to develop another 250,000 sf of retail on an adjacent 27.5 acres.
The funding comes as Nordstrom Rack, that chain's off-price division, prepares to open a new 35,000-sf store in the mall. It's the company's first Nordstrom Rack in New Jersey.
"We've wanted a Nordstrom Rack in New Jersey for many years now," says Scott Meden, president of the division. "We're excited to offer customers here their own Rack location."
The redevelopment of the shopping center was first revealed in 2005 and carried an estimated price tag at the time of $102 million. The projected completed date of late 2008 has now been moved to early 2009. Along the way, the property has shed anchors Macy's and Value but has added, besides those mentioned, Filene's Basement, Marshalls and Saks Off Fifth.
Built as an open mall in the late 1950s, the original Bergen Mall was enclosed in the early 1970s. It was acquired by Vornado from Simon Property Group in late 2003 for $145 million.
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