PREIT Secures $100 Million Retail Real Estate Financing for Mall at Prince George's in Maryland

PREIT has closed a $100 million mortgage financing for Mall at Prince George's in Hyattsville, Maryland, the company announced April 30. The loan, originated through Goldman Sachs, carries a fixed interest rate of 7.355% and a five-year term maturing June 6, 2031.

Commercial Real Estate Financing Details

As part of the closing, proceeds were used to pay down PREIT's First Lien Term Loan by $104.9 million. The transaction is expected to save the company $2.9 million in annual interest expense. The deal follows successful refinancings PREIT previously completed at Springfield Town Center and Dartmouth Mall. PREIT described the transaction as highlighting "improving lender sentiment towards high-quality enclosed regional mall assets" and reaffirming its standing as a "stronger, more financeable private company."

Mall at Prince George's Tenant Mix

Mall at Prince George's operates as a retail destination in Prince George's County, with tenants including Target, Macy's, TJ Maxx, Ulta Beauty, and JD Sports. The property is adding Primark, the international fashion retailer, which is scheduled to open in May, along with fast-casual restaurant concept HoneyGrow, expected to join later in the year. PREIT said the incoming tenants further strengthen the property's retail offerings.

Capital Markets Context

The Mall at Prince George's financing is the third major refinancing PREIT has executed following prior transactions at Springfield Town Center and Dartmouth Mall. PREIT currently operates as a private company. The transaction reflects what PREIT characterized as positive reception from capital markets for the company and its portfolio of enclosed regional malls.

The $2.9 million in annual interest savings resulting from the transaction provides cash flow relief as the company continues to execute on its asset management strategy, according to the company's announcement.