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April 07, 2017  

BofA to Lead Giant Mall Loan for Starwood

Starwood Capital has tapped Bank of America to lead a $1.7 billion mortgage on 10 malls.

J.P. Morgan, Deutsche Bank and Barclays are also in the lending syndicate. Each member will supply one-quarter of the proceeds. Eastdil Secured arranged the loan.

Slightly more than half the balance — about $950 million — will carry a fixed rate and a five-year term. The other portion will have a floating rate and a term of five years, including extension options. The syndicate will securitize the loan in a stand-alone offering next month.

Starwood acquired a 90% stake in six of the malls a few years ago from Australia-based Westfield, which retained the remaining interest. Starwood acquired the other four outright from Taubman Centers of Bloomfield Hills, Mich.

Starwood, an investment shop in Greenwich, Conn., has been building a regional mall portfolio for several years. Its Starwood Retail Partners platform now controls 30 malls with 28 million square feet.

It’s unclear which properties are being financed by the BofA syndicate. All told, Starwood has acquired at least 21 malls from Westfield and Taubman in three separate transactions. Two purchases from Westfield occurred in 2012 and 2013. In the first, Starwood bought 90% stakes in seven malls totaling 6.6 million sf for $1.1 billion. In the second, it paid $1.6 billion for 90% stakes in seven malls totaling 7.9 million sf. In 2014, Starwood bought seven malls totaling 7 million sf from Taubman for about $1.4 billion, including the assumption of $620 million of debt.