Macerich refinances three properties in New York and California

One of America’s leading mall owners has received backing from lenders that will ensure the continued operations of three properties totaling nearly 3 million sq. ft.

Santa Monica, Calif.-based Macerich announced that it has closed on a $370 million, five-year refinancing of the Green Acres Mall and Green Acres Commons open-air center in Valley Stream, N.Y.

Loans for both of the properties--which, combined, total 2.4 million sq. ft. of GLA-- were maturing during the first quarter of 2023. The new loan bears a fixed interest rate of 5.90%, is interest-only during the entire loan term and matures on January 6, 2028.

Macerich also reported that it closed a three-year extension of its $300 million loan on California’s Santa Monica Place in December. The extended loan carries a floating rate of LIBOR + 1.48%.

The company is in the process of refinancing an existing $405 million mortgage on Scottsdale Fashion Square in Arizona, a joint venture owned by Westcor, a Macerich subsidiary. The new five-year, fixed-rate loan is expected to be $700 million, which would generate nearly $150 million of incremental liquidity for Macerich. It is expected to close during the first quarter of 2023.

"Through a combination of loan extensions and refinancings, Macerich continues to effectively transact on its secured loan portfolio," said Macerich CFO Scott Kingsmore. "These three transactions totaling just under $1.4 billion speak to the strength of our longstanding credit relationships that we've cultivated over the years, our access to capital, and to the quality of our Class A regional town center portfolio."

Last August, Macerich announced that it would work with Philadelphia real estate developer David Adelman and Harry Blitzer Sports Entertainment to convert one-third of its Fashion Square mall in Center City into a new arena for the NBA’s 76ers. The move is expected to return a sizeable suburban traffic flow to Philadelphia’s Market Street.