Stan Kroenke’s purchase of The Village in Woodland Hills last month was funded by a $244 million acquisition loan from Deutsche Bank, The Real Deal has learned.
The German bank provided the non-recourse, senior term loan to Missouri-based development firm Kroenke Group for the purchase, according to loan documents filed on Dec. 27 with L.A. County.
Under the deal, Kroenke cannot use the proceeds for construction or sign any new leases at the property on the western end of the San Fernando Valley.
Kroenke bought the 600,000-square-foot mall at 6220 North Topanga Canyon Boulevard for $325 million. Unibail-Rodamco Westfield sold the property, as part of a larger effort to divest its assets in the U.S.
The deal was one of three Woodland Hills purchases Kroenke made last year. In March, his firm purchased the defunct Promenade mall just south of the Village for $150 million, a site he plans to convert into a 34-acre practice field and headquarters for his NFL team, the Los Angeles Rams.
In June, Kroenke spent $175 million on a vacant 13-story office building next door at 21555 Oxnard Street. At the time of the sale, CBRE, which brokered the deal on behalf of Kroenke and seller Ares Management, noted the property was sold for land value, suggesting redevelopment.
The Village is located one block away from the vacant office property, giving Kroenke more space to build his Rams facility.
Kroenke has not yet filed any plans with the City of L.A. to redevelop the Village outdoor mall, which houses retailers including Crate & Barrel and Total Wine. Unibail-Rodamco Westfield still owns the mall across the street, dubbed Westfield Topanga.
Deutsche Bank has provided few loans on commercial properties in the last six months. The most recent loan the bank handed out before the Kroenke deal was in November. That loan was a $75 million construction deed for 21221 Hawthorne Boulevard, provided to DJM Capital Partners.