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Water Tower Place Refinanced By Owner

Water Tower Place

(Credit: CBS)

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CHICAGO (CBS) - The company that owns the Water Tower Place mall has secured a $200 million loan to refinance the retail complex, according to a published report.

The firm General Growth Properties Inc. received the loan from Metropolitan Life Insurance Co. late last month, according to Crain’s Chicago Business.

The mall is 95 percent leased, and has been generating an annual cash flow of $26.2 million as of last year, according to Crain’s. Thus, Crain’s was able to increase the debt load on the property, taking out the new loan to replace an earlier one of $188 million, Crain’s reported.

The move comes as General Growth Properties moves to emerge from Chapter 11 bankruptcy. Under the reorganization plan for the company, shareholders will own stock in two separate companies — General Growth and a newly formed company called The Howard Hughes Corp., which will own General Growth’s portfolio of planned communities and other real estate development opportunities.

The Chicago-based General Growth Properties filed the largest real estate bankruptcy case in U.S. history in April 2009 under the burden of nearly $28 billion in liabilities.

In the Chicago area, General Growth Properties owns the Water Tower Place, as well as Oakbrook Center, Northbrook Court, Lincolnshire Commons, and Spring Hill Mall.

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