PHILADELPHIA-Pennsylvania Real Estate Investment Trust has refinanced mortgages on two malls in Pennsylvania and one in Maryland for a total of $146.1 million.
The Philadelphia-based REIT refinanced loans on the Lycoming Mall, in Pennsdale, PA, the Viewmont Mall in Scranton, PA and the Francis Scott Key Mall in Frederick, MD. The company said the loans were refinanced at an average interest rate of 3.91% over terms of five years and generated proceeds of about $9.7 million. The new deals reduced average interest rates by 172 basis points, after the effect of interest rate swaps on the loans, company officials note.
The loan on Francis Scott Key Mall was increased from $55 million to $62.6 million, and contains an option to increase the balance further to $70.5 million under prescribed conditions.
“The completion of these transactions is further evidence of success in the company’s ongoing effort to lower its overall financing costs while extending its maturity profile,” said Joseph Coradino, CEO of PREIT. “We are pleased with our continued ability to achieve attractive financing terms on properties across the portfolio.”
Lycoming Mall is a 800,000-square foot shopping center with sales per square foot of $270 as of December 31, 2012. Viewmont Mall is a 700,000-square foot mall with sales per square foot of $370 as of December 31, 2012. The Francis Scott Key Mall totals 700,000 square feet and posted sales per square foot of $344 as of December 31, 2012. All three malls are anchored by jcpenney, Macy’s and Sears stores.