$425M refinancing secured for Miracle Mile Shops on the Las Vegas Strip

PITTSBURGH, June 28, 2023 – JLL’s Capital Markets group announced today that it has arranged a $425 million refinancing for Miracle Mile Shops, a 503,484-square-foot entertainment and retail destination located at the center of the Las Vegas Strip.

JLL worked on behalf of the borrowers, IMI Miracle Mall LLC and IMI Miracle Harmon LLC, which are indirect subsidiaries of Institutional Mall Investors LLC, a co-investment venture between an affiliate of Miller Capital Advisory, Inc. and California Public Employees’ Retirement System, to secure a five-year, fixed-rate CMBS loan.

Goldman Sachs served as lead lender for the combined SASB/conduit loan. Bank of America and Morgan Stanley Bank also served as lenders. Initial loan quotes for this refinancing opportunity were provided by 12 different lenders. This loan replaced a maturing 10-year loan that JLL placed in September 2013.

Built in 2000 and redeveloped in 2008, Miracle Mile Shops includes approximately 130 food and beverage, jewelry, health and beauty, apparel and entertainment tenants. Notable tenants include V Theater, Saxe Theater, H&M, Victoria’s Secret and Lululemon. Approximately 24.8 million people visit the center annually. The borrowers are nearing completion of a major renovation started in 2022 to transform the property into a more modern retail destination with an immersive customer experience and expanded entertainment and restaurant offerings.

Situated at 3663 South Las Vegas Blvd., the property benefits from its integrated traffic drivers (not a part of financing), including Planet Hollywood Resort & Casino (2,500 rooms), Elara by Hilton Grand Vacations Hotel (1,201 rooms) and Zappos Theater (7,000 seats). Additionally, the 24,880 total hotel and timeshare rooms within walking distance and the 19,000 seats at the proximate T-Mobile Arena also contribute to the center’s customer base.

The JLL Retail Capital Markets Debt Advisory team was led by Senior Managing Directors Claudia Steeb and Barry Brown, Managing Director Carl Beardsley and Associate Zach Barone.

“JLL worked with the borrowers to determine acceptable competitive financing terms, and with the strong property performance and sponsorship, the asset received a great deal of initial lender interest, including 25 loan quotes from multiple lenders,” said Steeb. “Miracle Mile Shops has continued to thrive due to its location at the ‘Fifty Yard Line’ of the famous Las Vegas Strip and the amazing renovation that the borrowers are completing. JLL is proud to once again place the debt for this property.”

JLL’s Capital Markets group is a full-service global provider of capital solutions for real estate investors and occupiers. The group’s in-depth local market and global investor knowledge delivers the best-in-class solutions for clients — whether investment and sales advisory, debt advisory, equity advisory or a recapitalization. The firm has more than 3,000 Capital Markets specialists worldwide with offices in nearly 50 countries.

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Miller Capital Advisory, Inc. is an Investment Advisor with headquarters in Skokie, Illinois, a suburb of Chicago, and a regional office in Austin, Texas. The firm manages property investments throughout the entire United States. Real Estate investments under management totaled approximately $8.7 billion as of March 31, 2023.

CalPERS is the nation’s largest public pension fund, serving more than 2 million members in the retirement system and more than 1.5 million members in their health program. The Real Assets Program consists of three distinct portfolios: Real Estate, Infrastructure, and Forestland. These investments are acquired and managed through separate accounts, joint ventures, and comingled funds between CalPERS and investment management firms. As of March 31, 2023, CalPERS maintained approximately $71.2 billion in total assets under management within their Real Assets Program. CalPERS has investments in both domestic and international markets.

Institutional Mall Investors LLC is a co-investment venture owned by CalPERS, the nation’s largest public pension fund and an affiliate of Miller Capital Advisory, Inc. Miller Capital Advisory, Inc. serves as investment manager for Institutional Mall Investors LLC. Institutional Mall Investors LLC’s portfolio features regional and super regional shopping centers, such as Ala Moana Center, Houston Galleria, Oakbrook Center, and Scottsdale Fashion Square. The portfolio focuses on fashion-oriented retail properties in the United States. As of March 31, 2023, the portfolio included approximately 21.0 million square feet of retail GLA and over 1.26 million square feet of prime office space.