CHICAGO-Locally based General Growth Properties Inc. continues to recover from its bankruptcy by refinancing properties, and has recently arranged new loans for Staten Island Mall in Staten Island, NY and Boise Towne Square in Boise, ID. The new loans total $413 million at an average interest rate of 4.78%.
The New York mall’s new $273 million, 12-year mortgage at a 4.77% rate replaces a $273 million, 6.06% loan that was scheduled to mature in October 2015. The Boise property has a new $140 million, 12-year loan at a 4.79% rate, replacing a $65 million, 6.64% loan that was scheduled to mature in August 2014.
The 1.3-million-square-foot Staten Island Mall on Richmond Avenue was built in 1973, and renovated in 1993. The 190 stores include anchors JCPenney, Macy’s and Sears.
Boise Towne Square includes anchors Macy’s, Dillard’s, JCPenney and Sears in 1.2 million square feet at Milwuakee Street and Franklin Road. The property, built in 1988, had an interior mall renovation in 2008 and an exterior renovation in 2006. Nordstrom Rack will open its first-to-the-market store at the property in 2012, adding to the 185-store count.
This year, the company has so far refinanced 15 loans totaling $2.9 billion at an average rate of 5.26% and an average 10.2-year term, for a savings of about $630 million, according to a GGP statement. The REIT has 166 regional and super regional shopping malls in 43 states.
Not all GGP malls are being refinanced. In early August, the trust announced it will sell stockholders a 30-mall portfolio of mostly B class mall properties. The firm is trying other methods to offload less attractive sites, such as a reported auction of the 823,014-square-foot Northgate Mall in Chattanooga, TN, with an opening bid on Monday of $9 million.
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