MIAMI—Palm Beach Outlets, a 459,633-square-foot, open-air outlet center in West Palm Beach, FL, has secured a $165 million loan. The loan collateral also includes land for the future development of 105,000 additional square feet of retail space.

HFF worked on behalf of the borrower, New England Development and a commingled fund managed by Clarion Partners, to secure the long-term, fixed-rate loan through Cornerstone Real Estate Advisers, acting on behalf of an institutional client. Loan proceeds were used to acquire the property.

Completed in February 2014, Palm Beach Outlets includes eight small retail buildings surrounding two larger retail structures in a racetrack design layout plus 3,182 parking spaces and five out-parcels. One is yet-to-be-developed.

"Palm Beach Outlets is strategically located less than two miles west of Palm Beach's CBD and less than three miles west of the Island of Palm Beach," says HFF director Chris Drew. HFF senior managing director Riaz Cassum and real estate analyst Robyn King also worked on the deal. "As the first and only outlet center in Palm Beach County, capital providers recognized this asset as a trophy outlet center that has transformed the retail landscape in Palm Beach County."

Saks Off 5th Avenue anchors the retail center, which is 95.8% leased to 120 tenants including Nike Factory Store, Forever 21, Gap, Banana Republic, JCrew, Ann Taylor Factory Store, Brooks Brothers, Under Armour, Vera Bradley, and Kenneth Cole.  Palm Beach Outlets sits on 58.5 acres at 1751 Palm Beach Lakes Boulevard and shares access with the 300,000-square-foot Whole Foods-anchored Marketplace at the Outlets, which is not included in the loan.

The retail property has one-half mile of frontage along Interstate 95 and direct access from the highway at Exit 71. The location has a daily traffic count of more than 195,000 cars per day and pulls from a trade area with an average household income of more than $77,000 annually. Palm Beach Outlets is the first and only retail outlet center in Palm Beach County, with no other outlet centers within a 55-mile radius.