Tysons Corner Center gets an $850 million refinancing deal
- October 7, 2013
Prudential Mortgage Capital Co., Northwestern Mutual and TIAA-CREF have each provided $283.3 million, for a total of $850 million, to finance Tysons Corner Center. The 1.9 million-square-foot, regional mall located in Tysons Corner is undergoing a major transformation as several developers move forward on new projects associated with the extension of the Metro service.
“Tysons Corner is one of the most successful regional malls in the country. Its location in a dense and affluent suburb of metropolitan Washington, D.C., combined with a pending addition of more than 1.3 million square feet of mixed-use development, which, though not covered by the loan, made this an extremely attractive transaction for us,” Elizabeth Velazquez, a director with Prudential Mortgage Capital Co., said in a statement. “We are also proud to continue our longstanding relationship with The Macerich Co., whose experience as a mall operator also contributed to our decision.”
Macerich is the mall’s developer and owner. Scott Kingsmore, senior vice president of finance for The Macerich Co, said, “This was a large, fast-moving, highly complex and heavily negotiated financing with three co-lenders who delivered the closing in less than 30 days, and with whom Macerich has longstanding relationships.”
The 10-year loan, with a 4.1 percent interest rate, refinances Tysons Corner Center, located at the busy intersection of Chain Bridge Route 123 and the Capital Beltway/I-495. Not included in the collateral, but key to the property’s investment appeal, according to a press release from the lenders, is a new Macerich development: a 22-story, class-A office tower, a 429-unit, 30-story apartment tower and a 17-story hotel. It will be connected to the mall by a 55,000-square-foot pedestrian plaza, which will also link a new Metrorail station and bus station that’s expected to deliver more than 5,000 passengers per day to Tysons Corner Center.