Capital One is the lender on a $47.7 million loan on the open-air 430,000 sq ft Ambassador Center shopping center in Lafayette, Louisiana.
The seven-year loan with a fixed interest rate of 3.22 percent was secured by CBL & Associates Properties and Stirling Properties. The borrowers will use the loan to pay off a $41.9 million balance from existing construction loans and then use excess proceeds to fund remaining construction costs.
“This attractively priced new loan further reduces our floating rate debt and adds to our well-laddered maturity schedule,” said Farzana Mitchell, CFO at CBL, in prepared remarks.
Tim Smith, a vice president in Capital One’s Commercial Real Estate Group who led the transaction, noted that Stirling is “a long-term client.”
The property on Ambassador Caffery Parkway is anchored by Costco, Dick’s Sporting Goods, Field & Stream, Marshall’s, Home Goods, and Nordstrom Rack. CBL and Stirling jointly own The Ambassador Town Center, which is currently 98 percent leased.
Last month, Capital One provided a $51 million refinancing on a 77,805 sq ft biotech and laboratory building in Cambridge, Massachusetts, within walking distance of Harvard University. The company has $330.3 billion in total assets as of March 31, 2016.
CBL owns and develops malls and shopping centers across the US, while Stirling Properties is a real estate company active across the Gulf states.