The proceeds will replace a $925 million commercial mortgage-backed securities loan, originally issued by Morgan Stanley in 2023 and due to mature in August
Unibail-Rodamco-Westfield has secured a $925 million refinancing loan for its Westfield Century City mall, a 1.4-million-square-foot retail center in Los Angeles, according to a report from Commercial Observer citing a Fitch report.
The deal, co-originated by Bank of America, Goldman Sachs, Morgan Stanley, Santander Bank, and a Deutsche Bank affiliate, is set to close next week with a five-year term. The proceeds will replace a $925 million commercial mortgage-backed securities loan, originally issued by Morgan Stanley in 2023 and due to mature in August, as noted by Yardi Research Data.
URW acquired the Santa Monica Boulevard property in 2002 for $165 million and has since invested heavily, including a $1 billion renovation completed in 2017, according to Commercial Observer. Newmark valued the mall at $2.04 billion in May. Anchored by Macy’s, Bloomingdale’s, and Nordstrom, the mall hosts over 260 tenants, including Guess, ZARA, Tesla, and Tiffany & Co., and maintains a 95.6 percent occupancy rate. Spanning 19 acres across from The Los Angeles Country Club, it opened in 1964.
The refinancing comes as Los Angeles’ retail market remains largely stable, though vacancy rates rose 30 basis points year-over-year to 6.1 percent in the second quarter, per a Cushman & Wakefield report. The average asking rent increased 0.6 percent to $35.18 per square foot. Meanwhile, other recent market activity includes Federal Realty Investment Trust’s $69 million sale of a 180,000-square-foot retail portfolio on the Hollywood Walk of Fame to Tinder co-founder Justin Mateen and his brother Tyler, reported by Commercial Search.
URW, which operates 67 shopping centers across 11 countries, including 39 Westfield-branded properties, also manages Westfield Culver City and Westfield Fashion Square in the Los Angeles area.
