Las Vegas — The 501,522-square-foot Miracle Mile Shops is located on the Las Vegas Strip.
Las Vegas — A joint venture between Tristar Capital LLC and RFR Holding LLC has received $580 million in refinancing for the Miracle Mile Shops, a 501,522-square-foot mall located on the Las Vegas Strip.
A lender group led by Cantor Commercial Real Estate provided the 10-year CMBS loan. JPMorgan and Citigroup were the other lenders in the financing, which was arranged by HFF.
“HFF evaluated numerous financing alternatives to secure the optimal recapitalization terms, keeping in mind the significant value creation opportunities ahead for the mall,” says Michael Fuchs, co-founder of RFR Holding. “In the end, the financing provided us the desired flexibility and returns.”
The New York City-based firms are using the loan to refinance existing debt and provide funds for additional improvements, including the renovation of the retail area surrounding the PH Live Theatre.
In 2004, the joint venture acquired Miracle Mile Shops and immediately embarked on a $130 million renovation and rebranding program. The mall is currently 95 percent leased to more than 180 tenants, including many with sales exceeding $1,000 per square foot annually. Notable tenants include H&M, Urban Outfitters, GUESS, Gap, Cabo Wabo, Tommy Bahama and Quicksilver.
“We have positioned Miracle Mile Shops as one of the top five malls in the country with tenant sales at double the national average and more than 26 million shoppers per year,” says David Edelstein, president of Tristar Capital.
The property also features a 4,903-space parking garage and five theaters. Planet Hollywood Resort & Casino and Elara, a Hilton Grand Vacations hotel, anchor Miracle Mile Shops. Robert K. Futterman & Associates serves as the project marketing and leasing advisor for the ownership group.
The loan is said to be the largest closed by Cantor so far, according to Claudia Steeb, who with Manny de Zarraga, led the HFF team that arranged the financing.
Founded in 1991, RFR Holding LLC is a privately owned real estate investment, development and management company. RFR owns more than 100 office, retail, hotel and residential properties across the U.S.
Tristar Capital is a real estate firm that builds and invests in both commercial and residential properties. Operating in the New York metropolitan region for the past 25 years, Tristar has expanded into markets including South Florida, where it owns the W South Beach Hotel along with RFR Holding.
— Rachel Goff