Goldman Sachs and JP Morgan are selling $725 million of commercial mortgage bonds backed by a single loan that is secured by four retail shopping malls, according to Morningstar.
Starwood Retail Property Trust 2014-STAR is backed by a three-year floating-rate loan with two one-year extension options. The loan pays only interest for its entire term.
The properties are owned by Starwood Capital Group and include: the Mall at Wellington Green, located in Palm Beach County, Florida; MacArthur Center, located in Norfolk, Virginia; Northlake Mall, located in Charlotte, North Carolina and The Mall at Partridge Creek, located in Macomb County, Michigan. SRP Property Management LLC and affiliate of Starwood Capital Group, manages the four properties securing the loan.
The malls were built in 1999 through 2007 and are anchored by tenants such as Nordstrom, Macy’s and Dillard’s. Total occupancy at each mall currently exceeds 93% and all four malls have posted sales in excess of $420 per square foot in 2012, 2013, and the trailing 12-month period ending August 2014. “With the exception of 2013, where in-line sales dipped across the portfolio, sales have shown a steady increase since 2009,” Morningstarstated in its presale report.