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Taubman Centers, the Michigan-based retail developer that owns the Mall at University Town Center in Sarasota County with Benderson Development Co., has refinanced the property's debt.
Under new terms, Taubman borrowed $280 million at a fixed rate of 3.45%, with its loan maturing in 2026, according to a company announcement made in conjunction with its third-quarter earnings.
The new debt also is non-recourse to the company and interest-only for the first six years.
Taubman used the money backed by the 880,000-square-foot mall to satisfy $225 million in floating interest rate debt carrying a 2.22% rate, and another nearly $30 million in proceeds were used to pay down lines of credit.
“The mall has a nice track record now, since it's been open two years, and that allowed us to get a more attractive interest rate,” says Erik Wright, a senior analyst in Taubman's investor relations department. “We also believe interest rates are likely to go up in the future, so we wanted to lock in to a fixed rate now. We think this new financing is a real testament to the strength of the operation there.”
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