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Rouse Properties, Inc. (NYSE: RSE), a national owner and operator of enclosed regional malls, today announced that it closed on a new $65.0 million mortgage loan secured by Lakeland Square Mall, the dominant shopping center located along the I-4 corridor between Orlando and Tampa, Florida. The non-recourse loan bears interest at a fixed rate of 4.17% and matures in ten years.
This 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 approximately $13.4 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.
“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,” said Andrew Silberfein, president and chief executive officer of Rouse Properties. “This attractive financing repays our only 2013 loan maturity and improves the Company’s financial flexibility. In the last twelve months, our refinancings have generated aggregate net proceeds to the Company of almost $46 million.”
Lakeland Square Mall, located in Lakeland, Florida, 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, jcpenney, Sears and Burlington Coat Factory. Nationally recognized tenants include Aeropostale, Bath and Body Works, Champs Sports, Finish Line, Kay Jewelers, and Victoria’s Secret. The city of Lakeland is home to the headquarters of Publix supermarkets, Florida’s largest private employer. The market is also a local hub for higher education, with over 35,000 students enrolled in the nine nearby colleges.