CBL & Associates Properties, Inc. announced Friday that it has closed on $314.45 million of new secured non-recourse financings at a weighted average interest rate of 4.07 percent, representing a 178 basis point improvement compared with the interest rate borne by the maturing loans, reported officials.
CBL entered into a new $276.0 million ($138.0 million at CBL’s share) loan secured by Oak Park Mall, its super-regional shopping center in Kansas City (Overland Park), KS, owned in a 50/50 joint venture. The new 10-year non-recourse loan bears interest at a fixed interest rate of 3.97 percent. Proceeds from the loan were primarily used to repay the $275.7 million maturing loan, which bore an interest rate of 5.85 percent.
CBL also entered into a new $38.45 million ($19.23 million at CBL’s share) loan secured by the Outlet Shoppes at Gettysburg, its owned outlet center located in Gettysburg, Pa., owned in a 50/50 joint venture. The new 10-year non-recourse loan bears interest at a fixed interest rate of 4.804 percent. Proceeds from the loan were used to repay a $38.25 million maturing loan, which bore an interest rate of 5.87 percent.
“We are pleased to close these new financings, which are consistent with our strategy of maintaining secured debt on joint venture properties as well as mitigating risk by fixing interest rates long-term,” said Farzana Mitchell, CBL’s chief financial officer. “The significant improvements in the stated interest rates from these financings will result in nearly $2.8 million annually in interest savings for CBL.”