Monday, September 9, 2013

$580 million refinancing of Miracle Mile Shops on Las Vegas Strip arranged by HFF


Miracle Mile Shops on the Las Vegas Strip

Britney Spears
PITTSBURGH, PA – HFF announced today that it has arranged a $580 million refinancing for the Miracle Mile Shops, a 501,522-square-foot mall located at the epicenter of the Las Vegas Strip.  Miracle Mile Shops is one of the country’s elite performing malls with top tier tenant sales.

               HFF worked exclusively to secure the financing on behalf of the ownership group comprised of a joint venture between Tristar Capital and RFR Holding LLC.  Robert K. Futterman & Associates serves as the project marketing and leasing advisor for the ownership group. 

The 10-year, fixed-rate CMBS loan was led by Cantor Commercial Real Estate, with JP Morgan and Citigroup as participants.  

Claudia A. Steeb
Loan proceeds were used to refinance existing loans and provide funds for additional improvements, including the exciting renovation of the retail area surrounding the PH Live Theatre that will soon be home to Britney Spears’ new Las Vegas show.

               In 2004, the Tristar-RFR ownership group acquired Miracle Mile Shops and immediately embarked on a $130 million renovation and rebranding program.  The mall is 95 percent leased to more than 180 tenants, including many with sales exceeding $1,000 per square foot.

 Notable tenants include H&M, Urban Outfitters, GUESS, Gap, Cabo Wabo, Tommy Bahama and Quicksilver.  The property also features a 4,903-space parking garage and five on-site theatres.  Miracle Mile Shops is further anchored by Planet Hollywood Resort & Casino and Elara, a Hilton Grand Vacations Hotel.

David Edelstein
“We have positioned Miracle Mile Shops as one of the top five malls in the country with tenant sales at double the national average and over 26 million shoppers per year,” said David Edelstein, president of Tristar Capital.

               “On ownership’s behalf, HFF evaluated numerous financing alternatives to secure the optimal recapitalization terms, keeping in mind the significant value creation opportunities ahead for the mall.  In the end, the financing provided us the desired flexibility and returns,” said Michael Fuchs, co-founder of RFR. 

The HFF team was led by managing director Claudia Steeb and executive managing director Manny de Zárraga, and included senior managing directors Barry Brown and Gerry Rohm, and managing director Bryan Ley.

Michael Fuchs
“Cantor’s creative structuring enabled them to be selected by ownership as the primary lender for the transaction.  This is believed to be the largest loan closed by Cantor to date,” added Steeb.
  
For a complete copy of the company’s news releases, please contact:

Kristen M. Murphy
Associate Director
HFF | One Post Office Square, Suite 3500 | Boston, MA 02109
Main: 617-338-0990 | Direct: 617-848-1572 | Cell: 617-543-4873 | www.hfflp.com

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