Las Vegas shopping mall Miracle Mile Shops has completed a $580 million refinancing, according to a statement released by mortgage banking firm HFF.
The mall, which is owned by TriStar Capital and RFR Holding, received a 5.25 percent fixed rate, 10 year CMBS loan. Cantor Commercial Real Estate took the largest piece of the loan, holding $290 million. JPMorgan and Citigroup each contributed $145 million, HFF's Claudia Steeb told Private Debt Investor.
“It was closed as one loan … The loan has a 10 year term with a 5 year interest only period, and was a low leverage transaction (just over 60 percent loan-to-value),” Steeb wrote in an email. “Proceeds were used to retire existing debt with a 2015 maturity and provide additional proceeds to ownership.”
The loan will also be used to pay down existing loans and allow the mall to renovate the retail area surrounding a theatre that will soon host to Britney Spears’ Las Vegas show, according to a statement. It is said to be the largest loan in Cantor’s history, according to a statement.
TriStar Capital and RFR Holding acquired Miracle Mile Shops in 2004 in a joint venture. After undergoing a $130 million renovation and rebranding program, the mall is now home to more than 180 tenants and is 95 percent leased.
“On ownership’s behalf, HFF evaluated numerous financing alternatives to secure the optimal recapitalization terms, keeping in mind the significant value creation opportunities ahead for the mall. In the end, the financing provided us the desired flexibility and returns,” said RFR co-founder Michael Fuchs in a statement.
Hff previously worked with TriStar on the sale of a Lincoln Road property in Miami. That process was led by HFF's Manny De Zarraga, Steeb told Private Debt Investor.