PREIT Gets $80M for Michigan Shopping Mall
PREIT has obtained $80 million to refinance Woodland Mall, a 1.2 million-square-foot shopping mall in Grand Rapids, Mich. Starwood Capital originated the loan, according to CommercialEdge information.
The note has a fixed 7.35 percent interest rate over five years. The JLL-arranged transaction will save the company roughly $5 million in interest expenses.
The property’s previous debt was a $130 million loan originated by U.S. Bank in 2016, the same source shows. Five years later, the lender agreed to amend and restate the note.
Then, in 2023, the mortgage was modified twice. The final amendment moved its maturity date to November 2024 with an additional option to extend through May 2025.
A closer look at the super-regional mall
Woodland Mall came online in 1969 on some 61 acres. In the late 1990s the property underwent several renovations including new flooring and curves to the ceiling throughout the mall, and new lighting and decor. PREIT acquired the asset in 2006 for $177.4 million and started redeveloping it prior to the pandemic.
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In 2017, Sears closed the 313,000-square-foot store that anchored the property. The structure was demolished and replaced with an expansion wing that includes a nearly 90,000-square-foot Von Maur store, the retailer’s first West Michigan location.
Apart from Von Maur, the shopping mall now features more than 100 regional and national retailers such as JCPenney, Macy’s, Phoenix Theaters, Barnes & Noble, MAC, Apple, Lego, Claire’s, Forever 21, Game Stop, Lush, Starbucks, Pandora, Sephora, Urban Outfitters, The Cheesecake Factory and Spencer’s, among others.
Located at 3195 28th St. SE, Woodland Mall is in an area where the daily traffic count reaches approximately 85,000 vehicles, according to PREIT. The super-regional mall attracts shoppers from a 60-mile area and serves households with the average income of more than $100,000 within a 15-mile radius.
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