Rouse Properties Refinances NewPark Mall for $135 Million
September 24 2015 - 6:30AM
Business Wire
- Company Realizes Significant Value
Creation From Renovation Strategy -
Rouse Properties, Inc. (NYSE:RSE) (“Rouse”) today announced the
closing of a new $135 million first mortgage loan for NewPark Mall,
a 1.0 million square foot retail property located in Newark,
California.
John Wain, Chief Financial Officer of Rouse stated, “This new
loan facility represents a $70 million increase over our previous
$65 million loan. This clearly demonstrates the meaningful value
creation we have already achieved with our significant renovation
and repositioning initiative currently underway, which is Rouse’s
largest planned capital investment in our portfolio. We have
already completed significant new leasing totaling over 182,000 sf,
including 120,000 sf of entertainment tenants such as AMC Theater
and John’s Incredible Pizza, and new tenants such as Jack’s
Restaurant and Bar, H&M, Footlocker, Torrid, Shoe Palace and
Daniel’s Jewelers. Many of our existing tenants will be remodeling
their stores, with the latest store prototypes from Victoria’s
Secret, Pink, Champs, Disney, Starbucks, Hollister and Hot Topic.
The on-going transformation of NewPark will create a premier
retail, dining and entertainment destination in San Francisco’s
East Bay, with the AMC opening slated in time for the holidays in
2015, and the indoor/outdoor restaurant pavilion opening in first
half of 2016. NewPark will be a cornerstone in our company’s
growing focus on California, which now accounts for about 25% of
our Net Operating Income.”
The new loan has a three year term, and one year extension
option. The initial draw on the loan was $114.3 million with
approximately $65 million of proceeds used to pay off the
property’s previous mortgage loan and $49.3 million used for
closing costs and general corporate purposes, including a paydown
of the Company’s revolving credit facility. The non-recourse
mortgage carries an interest rate of Libor + 2.10% which was fixed
with a forward starting swap, effective on January 1, 2016, at an
all interest rate of 3.26%. The remainder of the loan will be
available upon fulfilling certain conditions primarily related to
redevelopment work and additional leasing.
About Rouse Properties
Rouse Properties, Inc. (NYSE:RSE) is a publicly traded real
estate investment trust headquartered in New York
City and was founded on a legacy of innovation and creativity.
Among the country's largest publicly traded regional mall owners,
the Company's geographically diverse portfolio spans the
United States from coast to coast, and includes 35 malls and
retail centers in 21 states encompassing approximately 24.1 million
square feet. For more information please
visit: www.rouseproperties.com.
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for Rouse Properties, Inc.MediaMissy
Heanuemelissa.heanue@rouseproperties.comORInvestor
Relations212-608-5108IR@rouseproperties.com
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