PITTSBURGH, PA, September 9, 2013 - HFF announced today that it has arranged a $580 million refinancing for the Miracle Mile Shops, a 501,522-square-foot mall located at the epicenter of the Las Vegas Strip. Miracle Mile Shops is one of the country`s elite performing malls with top tier tenant sales.
HFF worked exclusively to secure the financing on behalf of the ownership group comprised of a joint venture between Tristar Capital and RFR Holding LLC. Robert K. Futterman & Associates serves as the project marketing and leasing advisor for the ownership group.
The 10-year, fixed-rate CMBS loan was led by Cantor Commercial Real Estate, with JP Morgan and Citigroup as participants. Loan proceeds were used to refinance existing loans and provide funds for additional improvements, including the exciting renovation of the retail area surrounding the PH Live Theatre that will soon be home to Britney Spears` new Las Vegas show.
In 2004, the Tristar-RFR ownership group acquired Miracle Mile Shops and immediately embarked on a $130 million renovation and rebranding program. The mall is 95 percent leased to more than 180 tenants, including many with sales exceeding $1,000 per square foot. Notable tenants include H&M, Urban Outfitters, GUESS, Gap, Cabo Wabo, Tommy Bahama and Quicksilver. The property also features a 4,903-space parking garage and five on-site theatres. Miracle Mile Shops is further anchored by Planet Hollywood Resort & Casino and Elara, a Hilton Grand Vacations Hotel.
"We have positioned Miracle Mile Shops as one of the top five malls in the country with tenant sales at double the national average and over 26 million shoppers per year," said David Edelstein, president of Tristar Capital.
"On ownership`s behalf, HFF evaluated numerous financing alternatives to secure the optimal recapitalization terms, keeping in mind the significant value creation opportunities ahead for the mall. In the end, the financing provided us the desired flexibility and returns," said Michael Fuchs, co-founder of RFR.
The HFF team was led by managing director Claudia Steeb and executive managing director Manny de Zárraga, and included senior managing directors Barry Brown and Gerry Rohm, and managing director Bryan Ley.
"Cantor`s creative structuring enabled them to be selected by ownership as the primary lender for the transaction. This is believed to be the largest loan closed by Cantor to date," added Steeb.
RFR Holding LLC is a Manhattan-based, privately-owned real estate investment, development and management company founded in 1991. During the past 25 years, RFR has assembled a world-class portfolio exceeding 100 properties across the office, retail, hotel and residential sectors.
Tristar Capital is a leading New York City-based real estate firm that builds and invests in both commercial and residential properties. Operating in the New York metropolitan region for the past 25 years, Tristar has expanded into vibrant markets including South Florida where they were early investors in the Lincoln Road pedestrian mall, built and own the W South Beach Hotel along with RFR Holding, and own and operate the Raleigh Hotel in partnership with Sam Nazarian of SLS Hotels.
RKF is one of the country`s leading independent real estate firms specializing in retail leasing, investment sales and consulting services for leading American and international chains, retailers, developers and institutional clients. RKF is headquartered in New York with offices in Chicago, Las Vegas, Los Angeles, Miami, Northern New Jersey, and San Francisco.
HFF (Holliday Fenoglio Fowler, L.P.) and HFFS (HFF Securities L.P.) are owned by HFF, Inc. (HF). HFF operates out of 21 offices nationwide and is a leading provider of commercial real estate and capital markets services to the U.S. commercial real estate industry. HFF together with its affiliate HFFS offer clients a fully integrated national capital markets platform including debt placement, investment sales, equity placement, advisory services, loan sales and commercial loan servicing. For more information please visit www.hfflp.com or follow HFF on Twitter at www.twitter.com/hff.
HFF Managing Director
MANUEL DE ZARRAGA
HFF Executive Managing Director
HFF Associate Director, Marketing
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Source: HFF, Inc. via Thomson Reuters ONE