Rouse Inks $65M Lakeland Mall Refi

LAKELAND, FL—Rouse Properties closed on a $65 million mortgage loan against Lakeland Square Mall. The non-recourse loan bears interest at a fixed rate of 4.17% and matures in 10 years.

The dominant shopping center located along the Interstate 4 corridor between Orlando and Tampa, FL, the asset was previously financed with a $50.3 million mortgage loan at an interest rate of 5.12%. Net proceeds to the company after related closing and defeasance costs were about $13.4 million.

“The refinancing of Lakeland Square Mall demonstrates Rouse's ability to utilize its platform and strategic capital to capture the inherent value that exists throughout our portfolio,” says Andrew Silberfein, president and CEO of Rouse. “This attractive financing repays our only 2013 loan maturity and improves the Company's financial flexibility. In the last 12 months, our refinancings have generated aggregate net proceeds to the company of almost $46 million.”

In 2012, Rouse executed new leases with Cinemark NextGen, a 47,000-square-foot, 12-screen, all-digital movie theatre, and a 42,000-square-foot Sports Authority to re-tenant a vacant anchor box and reconfigure excess inline gross leasable area. Rouse has commenced construction and the tenants are expected to open in late 2013.

Lakeland Square Mall is the only enclosed regional mall within a 30-mile radius. Built in 1988, the 883,290-square-foot, single-level enclosed mall is anchored by Macy's, Dillard's, JC Penney, Sears and Burlington Coat Factory. Nationally recognized tenants include Aeropostale, Bath and Body Works, Champs Sports, Finish Line, Kay Jewelers, and Victoria's Secret.