DALLAS — Read this story and more North Texas business news from our partners at the Dallas Business Journal.
The owners of one of Dallas' flagship malls are refinancing with a loan of more than half a billion dollars, debt reports reveal.
The owners of the 1.9 million-square-foot NorthPark Center are set to receive a $650 million commercial mortgage in a deal expected to close March 15, according to a Fitch Ratings report.
The two-year loan with three one-year extension options will be used to refinance $487.4 million in existing debt and return $138.9 million in equity to the borrower, among other costs and fees, according to the report. Investors will be able to purchase a stake in the property through commercial mortgage-backed securities.
The loan was made through Barclays Commercial Mortgage Securities LLC, U.S. Securities and Exchange Commission documents indicate.
The mall at U.S. Route 75 and Texas State Highway Loop 12 houses more than 200 shops, restaurants and entertainment tenants. It reported about $1.36 billion in sales over the 12 months ending in November 2023, according to Fitch Ratings.
Anchor tenants include Dillard's, Macy's, Neiman Marcus, Nordstrom, Eataly and a 15-screen AMC theater. Those tenants alone generated more than $507 million in sales over the same period.
The mall was built in 1965 and has since been at least partially owned and operated by the Nasher and Haemisegger family, according to the report.
In 2014, Strategic Property Fund, which is sponsored by J.P. Morgan Asset Management, acquired a 60% stake in the property from the Nasher family, the report states.
Fitch said the expected ratings for two tranches of debt in the deal are AAA and AA, which represent the two lowest levels of risk.
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