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Oakbrook Center Mall Scores $475M Refi
Fitch Ratings has assigned a triple-A rating to the trust holding a two-year, floating-rate, interest-only $319-million mortgage loan backed by Oakbrook Center, the Chicago region’s second-largest mall at 2.2 million square feet.
The property’s ownership, a joint venture between Toronto-based Brookfield Property Partners and an affiliate of the California Public Employees’ Retirement System, refinanced Oakbrook Center with the $319-million loan and $156 million in mezzanine debt for a total of $475 million.
In giving the property high ratings, Fitch stressed the low leverage, with a DSCR of 1.24x and loan-to-value of 71.2%. The ratings agency also cited the quality and location of the property, the strength of the sponsorship’s investment in Oakbrook Center and the strong tenant sales.
However, Fitch also noted the detrimental impact that the pandemic has had on retail. In the case of Oakbrook Center, that has led to rent deferrals for several tenants.
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- ◦Financing
