Brookfield, Queensland on Verge of $265M SoCal Retail Refi

A partnership between Brookfield Properties and Australia-based Queensland Investment Corporation (QIC) is set to secure a nine-figure refinancing loan for a portion of its 1.2 million-square-foot mall in Southern California’s Inland Empire. 

The borrowers are in the midst of closing a $265 million loan from Barclays (BCS) and J.P. Morgan toward a roughly 700,000-square-foot chunk of the Victoria Gardens mall at 12505 North Mainstreet in Rancho Cucamonga, Calif., according to The Real Deal, citing reports from ratings agency Moody’s.

The deal is set to close in July, per TRD, and the lenders plan to maneuver the new five-year, floating-rate loan into a commercial mortgage-backed securities package.

Brookfield and QIC already have a separate mortgage on the mall, as well as mezzanine financing, though specifics on those deals were not immediately available. 

Neither Brookfield nor QIC immediately responded to requests for comment. 

QIC has held a stake in the mall for about seven years, having acquired the interest in 10 regional malls from Forest City Realty Trust in 2017. Brookfield came into the picture the following year after spending $11.4 billion to acquire Forest City outright. The two companies have spent a collective $26 million renovating the property since 2020, per TRD.

New York-based Brookfield has had mixed success with its financing deals lately. The firm earlier this week clinched a whopping $750 million refinancing loan from Morgan Stanley toward its 54-story, 2.3 million-square-foot One Liberty Plaza office tower in Manhattan.

Meanwhile, the firm in May managed to extend the maturity date on a $250 million loan tied to the Figueroa at Wilshire office tower in Downtown Los Angeles to Oct. 1, coming to an agreement with lenders Massachusetts Mutual Life and Teachers Insurance and Annuity Association. The tower was listed for sale in 2022, but hasn’t yet found a buyer. 

Yet Brookfield has also dealt with its fair share of distress in the past year and change, defaulting on two loans tied to the 52-story Gas Company Tower and the 52-story 777 Tower in early 2023. The Gas Company Tower is on its way to a foreclosure sale this year, while a $145 million sale for 777 Tower fell through in April. 

Nick Trombola can be reached at ntrombola@commercialobserver.com.