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Macerich continues cost-cutting with refinance of Ventura mall

886K sf mall home to Target, Trader Joe’s, shuttered Sears

Thomas O'Hern, CEO, Macerich, and the Pacific View mall in Ventura (Trackinfo, CC BY-SA 3.0/via Wikimedia Commons, Macerich)
Thomas O'Hern, CEO, Macerich, and the Pacific View mall in Ventura (Trackinfo, CC BY-SA 3.0/via Wikimedia Commons, Macerich)

Macerich has refinanced a mall in Ventura in the latest deal by the company to trim costs on debt and continue a trend of narrowing losses.

The Santa Monica-based company scored a $72 million refinancing deal on the 886,000-square-foot Pacific View retail center, the firm said in an earnings report on Monday. The1o-year loan comes with an interest rate of 5.29 percent.

Column Financial and Morgan Stanley provided the loan, public property records filed with Ventura County show.

The shopping center, located at 3301 East Main Street, is home to Target, JCPenney and Trader Joe’s. Other tenants include Old Navy, Victoria’s Secret, Hollister and American Eagle.

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About 180,000 square feet at the property had been home to a Sears, though the department store closed at the end of 2019. The store was one of 96 Sears and Kmart stores that closed their doors across the country.

The refinancing deal comes as the company continues to lower its losses and increase its revenue. Macerich reported $203.4 million in revenue in the first quarter of 2022, up 13 percent compared to the first quarter of last year.

The company reported a net loss of $37.2 million during the same time period, nearly halving its $63.6 million net loss in the first quarter of 2021. Macerich’s stock has plummeted about 38 percent over the last six months to $12.70 per share.

Macerich is also extending some of its notes after trying to raise more funds to help meet outstanding debt obligations last year. Recently, the company pushed back a $175 million loan on the 1.3 million-square-foot The Oaks shopping center in Thousand Oaks to mature in 2024. The loan, which now bears interest at 5.25 percent, was originally set to expire on June 5. In February, the firm refinanced a 1.4 million-square-foot mall in Broomfield, Colorado, and is expecting to refinance a 1.3 million-square-foot retail center in Danbury, Connecticut.

The company now has $6.9 billion in debt, compared to $8.7 billion in the first quarter of 2021.

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