The Americana at Brand. Image courtesy of CommercialEdge
Caruso has obtained $450 million to refinance the retail component of The Americana at Brand, a 1 million-square-foot mixed-use property in Glendale, Calif., The Real Deal first reported.
Morgan Stanley and Goldman Sachs provided the funds that retire a $360 million loan originated by Metropolitan Life Insurance Co. in 2013, according to Los Angeles County public records. The CMBS loan has an interest rate of 7.1 percent.
Completed in 2008, The Americana at Brand encompasses 570,000 square feet of retail space, along with a residential component comprising 242 apartments and 100 condominiums. Anchored by Nordstrom, the property features a wide array of tenants including Apple, H&M, Barnes & Noble, Tesla and Samsung Experience Store, along with luxury brands such as Gucci, Louis Vuitton, Balenciaga and Bottega Veneta. Between 2015 and 2022, the asset has maintained an average annual occupancy rate of 98 percent, a DBRS Morningstar report shows.
Located at 889 Americana Way, The Americana at Brand is in a dense shopping area that also includes Glendale Galleria and Glendale Marketplace, among others. The property is close to Interstate 5 and some 10 miles north of downtown Los Angeles, as well as 8 miles from Pasadena.
The shifting retail market
The retail real estate market has been facing various challenges in recent years, as it was impacted by the aftermath of the pandemic. The sector is also seeing the effects of the volatile economic environment marked by increasing interest rates.
In a recent interview, Transwestern Managing Director of Retail Services & Urban Land Services Steve Williamson told Commercial Property Executive that lately there has been a noticeable return to brick-and-mortar, with experiential retail leading the way, a trend which is expected to continue especially in regional mixed-use venues.
