Major Refi

It’s still cool to cold in the commercial real estate financing market, so any major debt deal is big news. A $710 million refinancing package for a mall in Northern Virginia definitely makes the cut. Also for today: A major New York-area landlord’s debt rating tumbling into junk territory sets off fresh speculation about the travails of owning office.

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— Tom Acitelli, Deputy Editor

Mall Giant Macerich Closes $710M Refi for Tysons Corner Center in NoVA

Macerich has secured a massive refinancing deal for its joint venture that owns Tysons Corner Center shopping mall in Tysons, Va. The $710 million commercial mortgage-backed securities (CMBS) loan comes with a fixed interest rate of 6.6 percent with interest-only payments until it matures in late 2028. The loan replaces a $666 million loan set to mature Jan. 1. Tysons Corner Center is a 1.8 million-square-foot retail center anchored by Nordstrom, Bloomingdale’s and Macy’s, and was 96 percent leased as of last quarter. The property will not serve as collateral for the new loan. A group of lenders consisting of Bank of Montreal, Goldman Sachs, JPMorgan Chase and Deutsche Bank originated the CMBS loan.

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Vornado’s Debt Rating Downgraded to Junk Category by Moody’s

Vornado Realty Trust’s debt and preferred stock ratings plunged into junk territory after a downgrade from Moody’s this week. Moody’s knocked both Vornado’s senior debt and preferred stock ratings down to just below investment grade Monday, citing the company’s declining ability to cover its debt payments and other fixed charges. Vornado’s earnings have fallen in proportion to its fixed charges, reaching a coverage ratio of 2.3 at the end of the third quarter of 2023, according to Moody’s. The new Ba1 rating indicates Vornado’s debt obligations pose “substantial credit risk,” and Moody’s predicted its coverage ratio will remain weak for the next one to two years.

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