MIAMI-In a transaction that signals a growing appetite for strong retail investments, Mall of the Americas has secured a $52.5 million loan extension. The property is about 95% occupied.
Palm Beach-based Sterling Organization, a retail real estate investment, services and development company, owns and operates Miami’s megamall. Al Rex, senior vice president of Weston-based Grandbridge Real Estate Capital, facilitated the transaction with the lender, Allstate.
“While the loan was not maturing for another two years, we felt that proactively managing our balance sheet well in advance of our loan expiration was prudent,” says Brian Kosoy, president and CEO of Sterling. Mall of the Americas’ major tenants include Home Depot, Marshalls, Ross Dress for Less, AMC Theaters, CompUSA, Tiger Direct and Old Navy.
Mall of the Americas spans 790,000 square feet on West Flagler Street, adjacent to the Palmetto Expressway and just south of Dolphin Expressway. Its location off a major South Florida traffic artery where over 400,000 vehicles pass daily makes it one of the most accessible and visible shopping centers in Florida.
“Most of the insurance companies we represent have a larger program for 2011 than they did for 2010,” Rex tells GlobeSt.com. “They consider real estate a relatively safe place to allocate investment dollars again, with good value and healthy yields. The financing deals are more conservative and they look harder at the fundamentals, but they are willing to invest in properties like Mall of the Americas.”
The 50-acre megamall leverages about 1,800 linear feet of unobstructed frontage along the Palmetto Expressway. It’s anchors post sales volumes ranked among the highest in the country. With the addition of a DMV office in the mall, the owners expect even more foot traffic.
“This is a sizeable refinance that signals we are turning the corner,” Anthony Blanco, co-managing partner at Plaza Advisors in Miami, tells GlobeSt.com. “The market is starting to gain some velocity as it relates to retail financing. This deal speaks to the strength of the asset, an infill, irreplaceable piece of real estate with a long history of successful operations.”
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