Urban Edge Properties closes $119M debt refinancing at The Outlets at Montehiedra
Urban Edge Properties announced it has completed the refinancing of its $119 million mortgage loan at The Outlets at Montehiedra in San Juan.
The existing commercial real estate loan was due to mature in July 2021 and consisted of an $83 million senior note bearing interest at 5.33% and a $36 million junior note, including accrued interest, at 3.0%, Union Edge Properties confirmed.
Based on the payoff provisions of the existing loan, the $36 million junior note will be forgiven and the senior note will be replaced by a new 10-year $82 million mortgage bearing interest at a 5.0% fixed rate provided by Banco Popular de Puerto Rico.
“We’re excited to partner with Banco Popular, the most prominent banking institution on the island, to bring long term stability to this important asset,” said Urban Edge Properties CEO Jeff Olson said.
“We look forward to continuing to enhance this property and providing the San Juan community with an exciting offering of best-in-class tenants,” he said, of the shopping center that was turned into an outlet concept in 2016, following a $20 million investment.
With the completion of this refinancing, the company does not have any other debt maturities until May 2022.
“Post this refinancing, the weighted average remaining term for all secured mortgage debt outstanding increases from approximately five years to six years, further enhancing an already strong and liquid balance sheet,” the company stated, adding that ss a result of the refinancing, it will record a gain on extinguishment of debt of approximately $36 million in the second quarter.
The mall reopened Monday after a two-month closure mandated by the government as a preventive measure to contain the spread of the COVID-19 virus.