MetLife Lends $51M to Refinance SI Outdoor Shopping Center
MetLife has provided a $51 million loan to Pergament Properties to refinance the 360,000-square-foot Pergament Mall at 2795 Richmond Avenue in Staten Island, NY, Commercial Observer has learned.
The 15-year, full-term and interest-only loan has a rate of 4.02 percent, sources told CO. The property is located adjacent to the massive, 1.3-million-square-foot Staten Island Mall on Richmond Avenue.
Robert Altman, a co-managing partner at ABS Altman Warwick—a capital markets advisory shop that operates under ABS Partners Real Estate—originated the debt on behalf of the borrower.
“The refinancing provided the borrower with significant additional capital for future capital expenditures and corporate growth while also significantly lowering their debt service,” Altman said in a statement. “The unusually flat yield curve provided an opportunity for us to extend the borrower’s interest rate protection by providing a term of 15 years with a negligible premium to the 10-year rate.” ABS declined to provide further details on the transaction.
Built in 1965, the mall is currently 86 percent leased and anchored by a Stop & Shop supermarket, according to data on CoStar Group. The property is also home to a Bed, Bath & Beyond, a Best Buy, a Party City and art and crafts store Michael’s.
Pergament is currently marketing for lease just over 55,000 square feet of retail space across three separate locations at the property, as per the firm’s website.
A spokesman for MetLife declined to comment on the transaction. Officials at Pergament did not immediately provide comment or additional details.