Rouse Properties refinances $52 million loan for West Valley Mall

Rouse Properties, Inc. has closed on a new $52 million mortgage loan secured by West Valley Mall. The non-recourse mortgage carries a floating interest rate of LIBOR plus 175 bps and matures in five years, with a five-year extension option. The loan can be swapped at any time solely at the borrower's election to a fixed rate of interest. This asset was previously financed with a $47.1 million mortgage loan bearing interest at 3.43%, with an original maturity date in January 2014. Net proceeds to the company after related closing costs were $4.4 million. "This attractive refinancing of West Valley Mall is the result of improvements made to the mall since our spin-off in early 2012, including substantial leasing accomplishments, cosmetic improvements made to enhance the quality of the mall offerings for the consumer, and continued recovery in the economic landscape for the surrounding trade area," said John Wain, CFO of Rouse Properties. As the only enclosed mall within an 18-mile radius, West Valley Mall serves a trade area of 340,000 consumers. On a daily basis, 112,000 vehicles pass West Valley, which sits along I-205, the main artery connecting the San Francisco Bay Area with San Joaquin County, one of the fastest growing counties in California. The 886,903 square foot shopping center is anchored by Macy's, Target, Sears, and JC Penney, and includes nationally-recognized inline tenants such as Bath and Body Works, Foot Locker, The Children's Place, Victoria's Secret, and Zumiez.