TAYLOR, MI-On the for-sale block as early as last year, the 900,000-square-foot Southland Center mall here has instead been refinanced by its new owner, New York City-based Rouse Properties Inc., for $78.7 million. The mall is one of the non-core malls that Chicago-based General Growth Properties discarded into the new Rouse spin-off company earlier this year.
The mall on Eureka Road was built in 1970 as the newest of the four original regional malls in the Detroit area. Anchors include Macy’s, JCPenney and Best Buy. Last week, Rouse announced that retailer Forever 21 has signed a lease to take over a former 22,500-square-foot Borders space at the property.
According to a Rouse statement, the non-recourse loan bears interest at a fixed rate of 5.09% and matures in 10 years. About $58.5 million of the proceeds were used ot pay down the property’s allocation of the company’s term loan, and $11.7 million was used to pay the release allocation. Net proceeds to the company after related closing costs are about $8.2 million.
In a GGP report in August 2011, Southland Center had been 94.8% leased. As of March 2012, however, the mall is now 87.1% leased, according to a Rouse SEC filing. That number may not include the Forever 21 space, but it’s not clear, as a Rouse spokesman tells GlobeSt.com that the company is not discussing occupancy at Southland.
General Growth dropped its 30 most non-performing malls into the Rouse trust at the beginning of January 2012. Rouse picked up the troubled Grand Traverse Mall in Michigan in February.
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