NorthPark Center to Refinance, Make Capital Improvements

The NorthPark Center owners are refinancing and have plans for improvements with a $650 million loan expected to close March 15, according to a Fitch Ratings report.

The commercial mortgage deal is expected to close March 15.

The loan will be used to refinance $487.4 million of the property’s existing debt and return $138.9 million in equity to a joint venture between NorthPark Management Co. and J.P. Morgan Asset Management. It will also fund $17.2 million in leasing costs escrow and pay closing costs.

The joint venture has budgeted $71.4 million for capital improvements over the next five years.

As of November 2023, the 1.9 million-square-foot shopping center was 95.7% occupied and had sales of $1.36 billion in the 12-month period leading up to it. NorthPark Center is appraised at $1.42 billion.

The two-year loan includes three one-year extension options.

J.P. Morgan Asset Management’s Strategic Property Fund acquired a 60% interest in the property from the Nasher/Haemisgger family in 2014, who has owned the property in part or whole since 1965.