U.S. Bank, as joint lead arranger and administrative agent, closed on a $320 million loan for The Taubman Realty Group Limited Partnership to finance the development of The Mall of San Juan, a 650,000-square-foot shopping and entertainment complex in Puerto Rico. Located in the populous San Juan metropolitan area that attracts nearly five million tourists per year, the mall will be the first Caribbean location for major U.S. retailers Nordstrom and Saks Fifth Avenue.
Rendering of the exterior of the Mall of San Juan. (Photo: Business Wire)
“The Mall of San Juan, our bank’s first commercial real estate deal in Puerto Rico, will be a tremendous asset for the San Juan tourism industry and overall economy,” said Joseph Hoesley, vice chairman of Commercial Real Estate at U.S. Bank. “As a Minneapolis-based company with the Mall of America right in our backyard, we’ve seen firsthand the economic and cultural impact a true shopping ‘destination’ can have on a region.”
Situated on the coast of the Caribbean Sea in San Juan, the mall will include over 400,000-square-feet of retail shops across two levels, anchored by Nordstrom and Saks Fifth Avenue. The mall is currently under construction and set to open in March 2015.
“The Mall of San Juan will be the premier, high-end shopping destination in the Caribbean,” said Simon Leopold, treasurer and capital markets senior vice president for Taubman. “With its ideal location and diverse mix of retail, dining and entertainment options, the mall will be a must-see attraction for tourists visiting from throughout the region.”
The Taubman Realty Group Limited Partnership is the majority-owned operating partnership of Taubman Centers, Inc. (NYSE: TCO) (“Taubman”).
The Mall of San Juan loan was originated out of U.S. Bank’s commercial real estate office in Chicago. J.P. Morgan is joint lead arranger and syndication agent on the loan.