Although attendees at the recently held International Council of Shopping Centers (ICSC) Florida Conference reported seeing a slow recovery ahead for the state’s retail sector, several local retail properties have been able to attract new lenders and take advantage of record low interest rates.
Somerset Shoppes in Boca Raton, Florida was able to refinance its existing $30 million CMBS loan prior to its maturity next month, lower its interest rate by approximately 1% to 5.05%, and increase the principal balance of its loan to $42 million. The 188,000 square foot retail center is more than 95% leased and brings in rents averaging over $30 per square foot.
A 18,218 square foot retail building in Hialeah, Florida was part of the collateral for a $7.5 million loan from UNUM Life Insurance Co. The property houses a Walgreens Department Store.
Hot on the heels of Vornado’s purchase of 1100 Lincoln Road, financed in part by a $66 million mortgage loan with an interest rate of LIBOR plus 2.75%, Aurora Capital Associates has obtained a $21 million loan from Wells Fargo to invest on Lincoln Road. With rental rates of over $200 per square foot Lincoln Road Mall in Miami Beach, Florida is in demand.