Rouse Properties Announces Grand Opening of The Shoppes at Gateway
Company Release – 1/05/2016
– $43 Million Redevelopment Establishes Market’s Largest, Dominant Regional Power Center
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE:RSE) (“Rouse”) today announced the fourth quarter 2015 opening of The Shoppes at Gateway, an 820,000 square foot power center, located in Eugene, Oregon. In conjunction with the opening, Rouse entered into a new $75 million first mortgage loan for the property.
“We are extremely excited to announce the successful implementation and completion of our creative “de-malling” strategy at The Shoppes at Gateway. With a dynamic roster of many of today’s top destination retailers, The Shoppes at Gateway has opened to record crowds and sales, and is representative of the value-creation opportunities we have throughout our portfolio,” stated Andrew Silberfein, President and Chief Executive Officer of Rouse Properties. “Through our efforts, this asset has now assumed the position of the largest and highest quality power center between Portland and Sacramento. Additionally, we put in place a new first mortgage loan, demonstrating the substantial increases in cash flow and value generated by our redevelopment, while also providing us with complete flexibility to unlock the value of the asset at any point in the future.”
The Shoppes at Gateway enjoys exceptional frontage on I-5, the major north-south artery in western Oregon and is located near the University of Oregon. Rouse executed an innovative “de-malling” program, removing the mall’s central core and constructing new exterior frontage and outparcels, allowing for the addition of a prime assortment of today’s most popular and vibrant junior anchors, high-volume restaurants and everyday uses. The shopping center is now 94% leased, with such market-leading tenants as Cabela’s, Target, Ulta, Kohl’s, Hobby Lobby, Cinemark, Petco, Walmart Neighborhood Grocery, Marshall’s, Ross, Payless, Maurice’s, Ashley Furniture, Rack Room Shoes, International Fitness, Panera Bread, Noodle’s & Co. and Blaze Pizza.
The new $75 million first mortgage loan has a four year term, and a one year extension option. The non-recourse mortgage carries an interest rate of Libor + 2.20% which was fixed at a four year all-in swap rate of 3.64%. The loan is fully pre-payable at any time at the Company’s option, allowing maximum flexibility to pursue a variety of long-term strategic options.