Deutsche Bank Provided $244M For Recent Kroenke Mall Purchase
The Kroenke Group's $325M purchase of Unibail-Rodamco-Westfield's The Village in the San Fernando Valley was helped along by a $244M loan from Deutsche Bank.
Under the terms of the nonrecourse, senior term loan, Kroenke cannot use the money for construction and cannot sign new leases at the 600K SF Woodland Hills mall, The Real Deal reported.
Kroenke and Deutsche Bank have worked together before. In 2018, Kroenke used a $719M loan from Deutsche Bank to buy a roughly 30% stake in the Arsenal Football Club.
Kroenke purchased two other properties on the blocks surrounding The Village last year: the Promenade redevelopment site and a 13-story office building and the site it sits on.
Together, these purchases give Kroenke control over about 100 acres in the Valley, according to the Los Angeles Times. It is widely anticipated that Kroenke will use the land to build a sports-focused mixed-use development like the one around SoFi Stadium in Inglewood.
Deutsche Bank did not originate many loans for commercial real estate in the second half of 2022, according to TRD. The last CRE loan before this one was for DJM Capital Partners' Village Del Amo in Torrance for $75M, TRD previously reported.
