Rouse Properties Refinances Southland Center in Detroit for $78.75 Million
Company Release – 6/18/2012
NEW YORK–(BUSINESS WIRE)– Rouse Properties, Inc. (NYSE: RSE), a national owner and operator of regional enclosed malls, today announced that it has closed on a new $78.75 million mortgage loan for Southland Center, a leading shopping center serving Detroit’s Southern Wayne County submarket. The non-recourse loan bears interest at a fixed rate of 5.09% and matures in ten years.
This asset was previously financed within the Company’s Term Loan, which currently bears interest at a rate of 6.0%. Approximately $58.5 million of the proceeds were used to pay down the property’s allocation of the Company’s Term Loan, and $11.7 million was used to pay the release allocation, further reducing the Term Loan balance. Net proceeds to the Company after related closing costs are approximately $8.2 million.
“The refinancing of Southland Center reflects our recent success in adding value to the mall, as we continue to revitalize and improve the shopping experience and the quality of the tenant base,” said Andrew Silberfein, president and chief executive officer of Rouse Properties. “This lowers our cost of capital and continues to improve the Company’s financial capacity and flexibility.”
Located at 23000 Eureka Road in Taylor, Michigan, Southland Center is the only regional mall located in the Detroit suburbs south of I-94. The approximately 900,000 square foot, single-level, enclosed shopping center contains such leading retailers as Macy’s, JCPenney, Best Buy, Victoria’s Secret, American Eagle Outfitters, and Forever 21, which recently committed to an expansion to 22,500 square feet.
About Rouse Properties, Inc.
Rouse Properties, Inc. (NYSE:RSE) is a publicly traded real estate investment trust headquartered in New York City and 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 31 malls in 19 states encompassing approximately 22 million square feet of space. For more information please visit: www.rouseproperties.com.
Source: Rouse Properties, Inc.