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PRIMM, NV-Having stabilized the 358,146-sf Fashion Outlet of Las Vegas, Coral Gables, FL-based Talisman Companies recently closed on a 10-year, $65-million fixed rate permanent loan on the property.

Located on I-15 between Southern California and Las Vegas, the mall is part of the 142 acre Primmadonna Resort, which includes three casinos, 2,642 hotel rooms, an amusement park and two Tom Fazio designed golf courses. All three casino resorts and the mall are connected by a monorail system. The mall’s featured tenants include Neiman Marcus, Ralph Lauren, Tommy Bahamas, Versace, Kenneth Cole, Escada, Bally, Tod’s, Banana Republic and Tommy Hilfiger.

Coral Gables, FL-based Talisman Companies acquired the enclosed mall two years ago for $45 million. At the time, the property was 30% vacant, but Talisman has since raised occupancy to 93%. Talisman’s goal in the transaction was to secure low cost capital from the attractive interest rate environment. GMACC funded the loan using NetFunding.com’s loan origination system. The parties involved declined to reveal the interest rate, but other lenders say a likely rate for such a loan would be around 6%.

“Fashion Outlet of Las Vegas required a lender who … had the tools to structure the desired leverage and was willing to underwrite an unsubordinated ground lease 30 minutes south of the strip,” says NetFunding.com Managing Director Allen O’Brien.

MGM Mirage’s acquisition of the resort in 2001 has resulted in a very strong marketing partner for the mall. There is a shuttle service leaving three times daily from MGM Grand and New York New York for the 30 minute drive to the mall. As a result, it attracts 4.5 million shoppers annually and has comparable sales of over $500 per sf, placing it in the top 5 grossing outlet centers in the US and well above industry average of $229 per sf.

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