Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the debt and equity markets, click here.)

BLOOMFIELD HILLS, MI-In one of the largest single-mall financings completed in the US, Taubman Centers Inc. has completed a $540-million, fixed-rate refinance of the 1.3-million-sf Mall at Short Hills in Short Hills, NJ.

The 10-year loan, with a fixed-rate interest of 5.5% and no amortization, is being used to retire about $469 million of floating rate debt with a weighted average interest rate of 6.3%. Taubman’s current debt consists of a $260-million facility with a 6.7% fixed rate for the New Jersey mall along Route 24 and a $107-million construction loan for Northlake Mall in Charlotte, NC. The company will also use some of the new capital to pay off a line of credit, which stands at $102 million.

No one at Taubman was available for comment, but in a press release issued this morning, Lisa A. Payne, Taubman’s vice chairman and CFO, says the value of the refinancing proved “the material value creation that has occurred at Short Hills since the existing loan was placed in 1999.” She adds the loan allows Taubman to “save significantly on our interest costs during 2006 and beyond, reduce our leverage and lower our floating rate exposure to 12.5% of total debt.” Taubman’s current floating rate exposure is 22%. The collateral property is anchored by Bloomingdale’s, Macy’s, Neiman Marcus, Nordstrom and Saks Fifth Avenue.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. NET LEASE Spring 2021Event

This conference brings together the industry's most influential & knowledgeable real estate executives from the net lease sector.

Get More Information

GlobeSt. NET LEASE Awards 2021Event

These awards honor the industry's most influential and knowledgeable real estate executives from the net lease sector.

Get More Information


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.