Rouse Properties Refinances NewPark Mall for $135 Million
Company Release – 9/24/2015
– Company Realizes Significant Value Creation From Renovation Strategy
NEW YORK–(BUSINESS WIRE)– 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.
Rouse Properties, Inc.
Source: Rouse Properties, Inc.