PHILADELPHIA—PREIT has completed the refinancing of the mortgage loan secured by Woodland Mall, and extended and modified the terms of the existing mortgage loan secured by Viewmont Mall. The LIBOR-based loans total $187.0 million and carry a fixed weighted average interest rate of 3.16 percent after giving effect to interest rate swaps. The new debt instruments will result in future annual interest expense savings of approximately $3.7 million.
The revised terms for Viewmont Mall include the ability to borrow up to $12.5 million of additional funds when new tenants open in the existing Sears store. As previously reported by GlobeSt.com, PREIT has arranged for DICK'S Sporting Goods and Field & Stream to jointly lease the Sears space.
“We are thrilled to continue to strengthen our balance sheet with this announced satisfaction of all debt maturities until June of 2017 at improved interest rates,” says Joseph F. Coradino, CEO of PREIT. “Consistent with our balance sheet objectives, following these transactions we will recognize significant interest rate expense savings having reduced our average interest rate to 3.94 percent and extend the average time to maturity of our mortgage loans to six years.”
Woodland Mall, one of PREIT's premier properties, is a high-quality dominant regional mall located in Grand Rapids, MI anchored by Macy's, Sears, and JC Penney with sales per square foot of $537 and 99.6 percent occupancy as of December 31, 2015.
Viewmont Mall, in Scranton, PA, has recently undergone a thorough remerchandising and is currently anchored by Macy's, JC Penney and Sears. As of December 31, 2015 sales per square foot were $445 with occupancy of 99.3 percent.
PHILADELPHIA—PREIT has completed the refinancing of the mortgage loan secured by Woodland Mall, and extended and modified the terms of the existing mortgage loan secured by Viewmont Mall. The LIBOR-based loans total $187.0 million and carry a fixed weighted average interest rate of 3.16 percent after giving effect to interest rate swaps. The new debt instruments will result in future annual interest expense savings of approximately $3.7 million.
The revised terms for Viewmont Mall include the ability to borrow up to $12.5 million of additional funds when new tenants open in the existing Sears store. As previously reported by GlobeSt.com, PREIT has arranged for DICK'S Sporting Goods and Field & Stream to jointly lease the Sears space.
“We are thrilled to continue to strengthen our balance sheet with this announced satisfaction of all debt maturities until June of 2017 at improved interest rates,” says Joseph F. Coradino, CEO of PREIT. “Consistent with our balance sheet objectives, following these transactions we will recognize significant interest rate expense savings having reduced our average interest rate to 3.94 percent and extend the average time to maturity of our mortgage loans to six years.”
Woodland Mall, one of PREIT's premier properties, is a high-quality dominant regional mall located in Grand Rapids, MI anchored by Macy's, Sears, and JC Penney with sales per square foot of $537 and 99.6 percent occupancy as of December 31, 2015.
Viewmont Mall, in Scranton, PA, has recently undergone a thorough remerchandising and is currently anchored by Macy's, JC Penney and Sears. As of December 31, 2015 sales per square foot were $445 with occupancy of 99.3 percent.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Steve Lubetkin
Steve Lubetkin is the New Jersey and Philadelphia editor for GlobeSt.com. He is currently filling in covering Chicago and Midwest markets until a new permanent editor is named. He previously filled in covering Atlanta. Steve’s journalism background includes print and broadcast reporting for NJ news organizations. His audio and video work for GlobeSt.com has been honored by the Garden State Journalists Association, and he has also been recognized for video by the New Jersey Chapter of the Society of Professional Journalists. He has produced audio podcasts on CRE topics for the NAR Commercial Division and the CCIM Institute. Steve has also served (from August 2017 to March 2018) as national broadcast news correspondent for CEOReport.com, a news website focused on practical advice for senior executives in small- and medium-sized companies. Steve also reports on-camera and covers conferences for NJSpotlight.com, a public policy news coverage website focused on New Jersey government and industry; and for clients of StateBroadcastNews.com, a division of The Lubetkin Media Companies LLC. Steve has been the computer columnist for the Jewish Community Voice of Southern New Jersey, since 1996. Steve is co-author, with Toronto-based podcasting pioneer Donna Papacosta, of the book, The Business of Podcasting: How to Take Your Podcasting Passion from the Personal to the Professional. You can email Steve at [email protected].
