Brookfield Properties is tapping CMBS investors to finance a new $155 million loan for a regional shopping mall in Houston.
The bonds will be backed by a first-lien mortgage on Willowbrook Mall, a 1.52-million-square-foot shopping center approximately 20 miles northwest of the downtown central business district.
The mall includes high-end retail stores such as Apple, Sephora, and Michael Kors, as well as traditional anchor tenants Macy’s and Dillard’s that reported strong sales in 2019, according to Moody’s Investors Service. The mall’s in-line sales were $815 per square foot in 2019.
While the mall has yet to fill a 174,000 square-foot vacancy from the departure of Sears in April 2020, Moody’s considers the Sears absence as a “good opportunity for the sponsor to improve its tenant mix with more dining and entertainment options that are currently underrepresented at the property.”
The large-loan, commercial mortgage-backed securities transaction will include five classes of notes, including a $73.2 million Class A tranche with preliminary triple-A ratings from Moody’s.
Brookfield Properties REIT is an affiliate of Chicago-based Brookfield Properties Retail Group, one of the largest retail real estate companies in the U.S. with approximately 155 million square feet of retail space across 200 locations, according to Moody’s.
