A group of three life insurance companies lent $1 billion to refinance The Mall at Short Hills, a 1.4 million-square-foot luxury shopping center in northern New Jersey owned by Taubman Centers.
MetLife, New York Life Insurance Company and Pacific Life Insurance Company provided the 12-year, fixed-rate loan, according to a press release from MetLife. The debt replaces a 10-year, $540 million mortgage that MetLife provided on the property in late 2005. The previous loan carried a fixed interest rate of 5.5 percent, according to reports at the time.
MetLife is the lead lender in the refinancing, though each insurer took one-third of the new $1 billion loan. The debt carries an interest rate of 3.48 percent, Bloomberg reported.
The mall, which is located at 1200 Morris Turnpike in Millburn, N.J., is one of the ritziest in the U.S. with several high-end retail tenants that include Bloomingdale’s, Macy’s, Neiman Marcus, Nordstrom and Saks Fifth Avenue.
“MetLife has a strong relationship with Taubman and a long involvement in financing The Mall at Short Hills, one of the most successful regional malls in the country,” Robert Merck, senior managing director and global head of real estate for the largest U.S. life insurer, said in prepared remarks. “We also welcome the opportunity to work with New York Life Insurance and Pacific Life as partners on this major commercial mortgage.”
Taubman has a portfolio of 19 urban and suburban shopping centers throughout the U.S. and the Caribbean. A representative for the real estate company was unavailable for comment.