ORLANDO-Two shopping centers, Prime Outlets Orlando and the Designer Outlet Center, have received $35 million in financing for the redevelopment of the properties. New York City-based Pembrook Capital Management provided $15 million in subordinated mortgage financing and CIBC World Markets provided $20 million in subordinated financing. The financing is part of a $290-million construction loan facility

The financing on Prime Outlets Orlando was structured as a three-year, floating rate construction loan with a one-year extension option. "There's a really upscale and wide mix of retail and restaurants that made the deal attractive," Pembrook Capital Management managing director John Garth tells GlobeSt.com. "The deal made sense from a financial and real estate perspective and then to have community benefits on top of it was a deal clincher."

The properties are located one-quarter mile apart at the intersections of International Drive, the Florida Turnpike and Interstate 4. When redevelopment of the properties is completed, they will have 987,000 sf. The 641,774-sf Prime Outlets Orlando was built in phases from 1981 and 1990, and consists of two open-air malls separated by a canal along with freestanding buildings. The 204,915-sf Designer Outlet is an open air facility built in 1991.

Most of the renovation work will be conducted on Prime Outlets Orlando, upgrading it to more modern standards and increasing its size by slightly more than 140,000 sf to 775,000 sf. The Designer Outlet, which will undergo a facade renovation, will remain the same size. Tenants at Prime Outlets Orlando have been relocated to the Designer Outlet during redevelopment.

The tenant roster at the two centers is expected to include anchor tenants Neiman Marcus Last Call and Off 5th Saks Fifth Avenue Outlet, along with Polo Ralph Lauren Outlet, Kenneth Cole, Nike Factory Store, Adidas, Calvin Klein, Bass, Levis Outlet by MOST and Disney Character Warehouse. Prior to its redevelopment, average tenant sales were $382 per sf.