--Joy Wiltermuth
JP Morgan is pooling a number of loans it has inked for mall giant Simon Property Group into its estimated $1 billion commercial mortgage-backed securitization, according to bankers.
The Indianapolis-based real estate investment trust has closed a new 10-year $175 million 5.75% fixed-rate loan with the investment bank on Arizona Mills, a shopping center in Tempe, Ariz. The loan replaced a $130.9 million 7.90% fixed-rate loan slated to mature on October 5.
Simon has also tapped the bank to refinance a $76 million variable-rate mortgage backed by south Miami mall, The Shops at Sunset Place. That loan was slated to mature on October 9, but new loan terms could not immediately be learned.
At least one other south Florida mall loan is expected to be included in what market players are calling a “retail heavy” securitization. Retail REITs have provided a significant portion of the new CMBS collateral and the trend is expected to continue. “It’s a lot of retail, because not a lot of retail [loans closed] last year,” explained one banker. A bond investor tracking the JP Morgan deal agreed.....