â€”Rouse Properties Inc., based in New York City, has closed on a new $78.75 million mortgage loan for Southland Center, a shopping center serving Detroit's Southern Wayne County submarket in Taylor, Mich. The non-recourse loan bears interest at a fixed rate of 5.09 percent and matures in 10 years.
This asset was previously financed within Rouseâ€™ term loan, which currently bears interest at a rate of 6.0 percent. Approximately $58.5 million of the proceeds were used to pay down the propertyâ€™s allocation of the term loan, and $11.7 million was used to pay the release allocation, further reducing the term loan balance. Net proceeds to Rouse Properties are approximately $8.2 million.
â€śThe 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,â€ť said Andrew Silberfein, president and chief executive officer of Rouse Properties. â€śThis lowers our cost of capital and continues to improve the companyâ€™scapacity and flexibility.â€ť
Located at 23000 Eureka Road, Southland Center is the onlymall located in the Detroit suburbs south of I-94. The approximately 900,000-sq.-ft., single-level, enclosed shopping center includes tenants such as Macyâ€™s, JCPenney, Best Buy, Victoriaâ€™s Secret, American Eagle Outfitters and Forever 21.