A joint venture in which TaubmanCenters Inc. owns a 50% stake obtained a new $550 million non-recourseterm loan.
The consolidated joint venture, Taubman Cherry Creek ShoppingCenter LLC, owns the Cherry CreekShopping Center in Denver.
Metropolitan Life Insurance Co. and The Prudential InsuranceCo. of America provided the 12-year, interest-only loan. It bears a 3.85% fixedinterest rate and is pre-payable with penalty starting June 1, 2018. It may be repaidwithout a prepayment penalty starting Dec. 1, 2027.
Loan proceeds were used to repay the existing $280 million, 5.24%fixed-rate loan encumbering the shopping center. The remaining net proceeds wereevenly distributed to the joint venture partners. Taubman used itsroughly $135 million share of the excess proceeds to pay down its revolving linesof credit, according to a filing.