Please ensure Javascript is enabled for purposes of website accessibility

Taubman refinances Mall at UTC debt

  • By
  • | 11:00 a.m. November 11, 2016
  • Commercial Real Estate
  • Manatee–Sarasota
  • Share

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.”


Related Articles

  • October 26, 2012
Mall Maneuvers
  • October 31, 2014
Retail rules
  • September 27, 2013
Mall Man
  • December 27, 2013
Real progress