Rick Caruso secures $450M Refi on Americana at Brand

The company of real estate billionaire Rick Caruso has obtained a $450 million loan to refinance one of their greatest assets, the Americana at Brand. It is a commercial mortgage-backed securities (CMBS) loan with a five-year term that was received from Morgan Stanley and Goldman Sachs.

The loan’s interest rate, which as of July 12 is 7.1 percent, is about 2% more than the federal funds rate. The 570,000-square-foot building, which opened in 2008, is being financed for the first time by Caruso’s company using CMBS. Nearly 90% of the loan will be applied toward existing debt repayment. The property’s appraised value is $870 million, nearly twice what Caruso spent to build it.