Developer obtains $300M loan on Downtown Summerlin

Downtown Summerlin landlord Howard Hughes Holdings obtained a $300 million loan on the suburban Las Vegas development.

The company said in an earnings release Thursday that it recently closed on a new five-year mortgage secured by the property.

It did not say how it would use the proceeds, nor did it specify which aspects of Downtown Summerlin were put up as collateral for the loan.

Downtown Summerlin’s centerpiece is the 106-acre outdoor mall at Sahara Avenue and the 215 Beltway. But the developer has said that, overall, Downtown Summerlin spans 400 acres and includes other projects near the popular retail-and-dining hub.

Still, the company said in a presentation that the new $300 million in financing “highlights the strength of one of the portfolio’s highest-quality retail assets, reflecting solid operating performance and the successful transition and upgrade of tenants following the property’s 10-year anniversary.”

The outdoor mall debuted in October 2014.

Hughes Holdings spokeswoman Cristina Carlson said in an email Friday that the mortgage is a “new loan on a previously unencumbered asset.”

According to a securities filing, Downtown Summerlin has around 800,000 square feet of rentable space — excluding anchor stores — and this was 100 percent leased at the end of last year.

All told, this amounted to nearly $25.6 million in annualized base rent, the filing shows.

Texas-based Hughes Holdings sells land in Summerlin to homebuilders and has developed hundreds of millions of dollars’ worth of projects in the commercial core, off Sahara and the Beltway.

Overall, Summerlin spans 22,500 acres along the Las Vegas Valley’s western rim and boasts more than 130,000 residents, as well as parks, trails and community centers.

It has some of the highest home prices in Southern Nevada and is regularly among the top-selling spots for homebuilders nationwide.