Macerich, a retail real estate investment trust (REIT), has successfully refinanced Queens Center in Elmhurst, New York with a new loan of $525 million. The loan carries a fixed interest rate of 5.37% and allows for interest-only payments throughout the entire term.
According to Jack Hsieh, president and CEO of Macerich, this is the lowest rate achieved on a refinance since 2019 and it represents their largest outstanding loan. He also stated that Queens Center is consistently one of the top-performing properties in their portfolio.
Hsieh further explained that this successful transaction demonstrates confidence from capital markets in Macerich’s assets and progress on their Path Forward Plan launched earlier this year. This plan focuses on simplifying business operations, improving performance, and reducing leverage to add long-term value for shareholders, partners,and customers.
In regards to Queens Center specifically,Hsieh mentioned that they took into account more conservative assumptions when forecasting for the next five years until spring 2024.This gives them room to potentially outperform their plansand achieve even greater growth in funds from operations (FFO). Overall,this refinancing deal highlights Macerich’s commitmentto strategic initiatives aimed at creating valuefor all stakeholders involved.
