New Jersey-based Vornado Realty Trust announced Wednesday the modification of the $120 million, 6.04 percent mortgage loan secured by its Montehiedra Town Center.
In a release, the company said the loan has been extended from July 2016 to July 2021 and has been split in two portions: “a senior $90 million position, with interest at 5.33 percent to be paid currently, and a junior $30 million position, with interest at 3 percent, to accrue.”
The announcement comes just weeks after Vornado Realty Trust — a fully integrated equity real estate investment trust — announced that Montehiedra Town Center would be included in a spin-off into Urban Edge Properties effective Jan. 15.
As part of the planned redevelopment of the property, UE is committed to fund $20 million through a loan for leasing and building capital expenditures, of which $8 million has been funded, Vornado said.
“This loan will be senior to the $30 million position noted above and accrue interest at 10 percent,” Vornado said.
Once operational, UE will be an independent, publicly traded company listed on the New York Stock Exchange under the symbol “UE.”
The Montehiedra Town Center, located in Cupey, is a one-level enclosed mall with about 100 stores. Big Kmart, Home Depot, Marshall’s, Capri, a fourteen-screen theater complex and a food court anchor the mall developed in 1994.