The loan will not be funded for 18 months, but it is locked in at today's interest rates. The interest rate is closely guarded, but it is "favorable by current market standards which, for a property like the mall, would be somewhere between 150 and 250 points above the 10-year treasury," Brad Fillmore, MetroNational CFO, tells GlobeSt.com.

A MetroNational spokeswoman says the renovation will cost $300 million. MetroNational is kicking in about $110 million and the balance is coming from mall tenants.

The renovation will be completed in 18 months. Then, it's back to the closing table for the permanent financing in the deal structured with the New York teachers fund. Paul House and Tom Melody, both with Houston-based L.J. Melody, arranged the financing package.

The lender was interested in the loan for several reasons, including MetroNational's reputation for being a good borrower. Fillmore says the loan has a low or "conservative" LTV although he's not disclosing just what that is.

The completed mall will be anchored by a 300,000-sf Foley's, 250,000-sf Dillard's, 140,000-sf Lord & Taylor and 145,000-sf Target Greatland. The mall renovation is part of a $500-million redesign of the Memorial City campus, which includes the mall, the Memorial Hermann Memorial City Healthcare Campus and various office, residential and retail developments. Houston's Morris Architects designed the mall makeover.