- What CPP Investments is aiming to sell a B-note backed by the Grand Canal Shoppes in Las Vegas
- Why Debt was part of a US$975m refinancing of the 760,000 sq ft mall
- What next Marketing materials suggest investors could acquire the note at a discount
CPP Investments is looking to sell a US$215m ($291.4m) B-note backed by a high-end shopping center on the Las Vegas Strip.
The debt was part of a US$975m refinancing of Grand Canal Shoppes, a 760,000 sq ft mall that connects the Venetian Hotel and Palazzo Resort. The 2019 deal comprised the B-note and 23 senior pari-passu A-notes that were securitized via 17 CMBS offerings.
The B-note carries a fixed rate of 6.25% and matures in July 2029. Marketing materials suggest investors could acquire the note at a discount. Newmark has the marketing assignment.
Brookfield purchased the property in 2004 for US$776m and, in 2013, sold a 49.9% stake to Nuveen Real Estate for an undisclosed price. The property was built in 1999, expanded in 2007 and renovated in 2014.
Trustee reports show the property was 85% occupied as of March, and in Q1 had a debt-service coverage ratio of 3.28 to 1. For full-year 2023, the coverage ratio was 2.63 to 1.
Grand Canal Shoppes has more than 180 stores, including luxury brands Louis Vuitton, Burberry and Jimmy Choo. The property has cobblestone walkways, illuminated painted-sky ceilings and a canal offering gondola rides through the mall.
The collateral property encompasses the first three levels of the Venetian and Palazzo hotels. At 42,000 sq ft, the Venetian Casino is the mall’s largest tenant. Other top tenants include Madame Tussauds (28,000 sq ft), Tao Nightclub (24,000 sq ft) and Grand Lux Café (19,000 sq ft).
In addition to the Venetian and Palazzo hotels, which have more than 7,000 rooms, the shopping center is connected to the 1m-sq ft Las Vegas Sands Convention Center. The property is at 3327 and 3377 Las Vegas Boulevard South, near the center of the Las Vegas Strip.
