Macerich Closes $525M Refi of NY Mall
The rate is the lowest the company has received for a refinancing since 2019.
Macerich is refinancing the Queens Center, a shopping mall in Elmhurst, New York, thanks to scoring a $525 million loan.
The loan carries a fixed interest rate of 5.37 percent, with a five-year term. Plus, it will include interest-only payments.
Jack Hsieh, president and CEO of Macerich noted that the rate was the for refinancing that the REIT has been granted since 2019 and that the Queens Center has been “consistently one of the best-performing properties in our entire portfolio.”
The Santa Monica-based company described the area that the fortress asset is in as one of the most populated dense urban areas in the nation. It’s close to mass transportation options, as well as the JFK and LaGuardia Airports.
Some notable tenants at the Queens Center include American Eagle, Apple, Foot Locker, Hollister, Macy’s, Gap, Pandora, Sephora, Victoria’s Secret, Chick-fil-A, The Cheesecake Factory, and Shake Shack. Plus, new brands are set to open at the mall before the end of this year including H&M, Primark, and Burlington.
The lender on the refinancing was not disclosed.
“This completed transaction demonstrates confidence from the capital markets in Macerich’s assets and in progress on our Path Forward Plan, launched earlier this year, which is sharply focused on three key areas: simplifying our business, improving operational performance and reducing leverage,” Hsiegh said.
“Through advantageous refinancings like this, among other strategic initiatives, we are continuing to advance Macerich’s mission to add long-term value for our shareholders, partners and customers.”
Furthermore, under the Path Forward initiative, Macerich aims to lower its debt “to a low-to-mid 6x range” over the next few years. Plus, the real estate firm wants to put itself in a better offensive position whether that’s for acquiring assets, reinvesting, or development.
Meanwhile, Macerich was forced to default on a $300 million loan for Santa Monica Place, according to a report this summer from the Santa Monica Daily Press. The lender was Wells Fargo.
Macerich owns 45 million square feet worth of real estate, which includes 41 retail centers. The firm will conduct an earnings call for its third-quarter financial report on Wednesday, November 6.