Neiman Marcus scores $27M loan for Galleria store in Fort Lauderdale

September 3, 2019

Source: The Real Deal

Neiman Marcus closed on a nearly $27 million loan for its Fort Lauderdale location, marking the second loan the struggling retailer has secured in recent months in South Florida.

The Neiman Marcus Group got the $26.8 million in financing for the store at Galleria, at 2442 East Sunrise Boulevard, records show. Deutsche Bank, Credit Suisse and Ankura Trust Company are the lenders.

Neiman Marcus is an anchor tenant at the high-end mall, taking about 81,000 square feet. The retailer opened at the Galleria in 1982. Other anchors include Macy’s and Dillard’s.

Keystone Florida Property Holding Corp. owns the mall. It’s managed by JLL.

In July, Neiman Marcus closed on a $37.38 million loan from Credit Suisse for its Shops at Merrick Park location, at 390 San Lorenzo Avenue in Coral Gables, less than a month after Moody’s Investors Service upgraded Neiman Marcus Group’s probability of default rating.

Earlier this year, when Moody’s upgraded the retailer’s probability of default rating, it wrote, “the company’s successful completion of the term loan amendment extending the term loan maturity, issuance of new second lien notes, and exchange offer for its senior unsecured notes provides Neiman more time to improve its business, but we expect free cash flow to be negative as leverage remains at unsustainable levels. The risk of a future distressed exchange remains elevated,” according to a release.

Neiman Marcus Group, based in Dallas, Texas and led by CEO Geoffroy Van Raemdonck, has 42 locations nationwide, including another at Bal Harbour Shops.