CHICAGO – July 23, 2013 – Associated Bank recently announced completion of a $48 million senior loan for Merle Hay Mall, a regional mall and office complex located in Des Moines, Iowa. The floating rate facility was arranged by Associated Bank as sole agent, with Banker’s Trust, Two Rivers Bank and Trust, and Bank Iowa comprising the bank group.
Merle Hay Mall is a 1.1 million square foot, enclosed regional mall and office complex. Principal anchors include Target, Kohl’s, Younkers, and Sears. Generating over $150 million a year in sales, Merle Hay Mall was developed by an affiliate of Abbell Associates in 1959, which continues to own and manage the mall. Abbell Associates is a Chicago-based real estate company specializing in retail and office properties.
Merle Hay Mall has been an important community anchor in Des Moines for more than fifty years. We are pleased to be able to work with Abbell Associates as they execute their vision for revitalization of this valuable retail property,” said Michael McGovern, a vice president in the Chicago commercial real estate office of Associated Bank. “Associated Bank’s goal is to develop creative financing solutions for projects such as this that support the continued economic growth in communities throughout the Midwest.”
An initial redevelopment phase five years ago successfully transformed the eastern elevation of the mall with a streetscape and new facade, and created opportunities for retailers such as Ulta, Starbuck’s and Staples. The new loan provides capital for the final phase of the redevelopment and will fund the conversion of a split level retail area onto an eight-screen movie theater and microbrewery. It will also provide capital for the relocation and re-tenanting of various stores within the mall, upgrades to the interior and exterior common areas, streetscaping of the southern exposure, and funds to support the attraction of tenants for new retail shops, restaurants and a new outparcel.
“Associated Bank has been a true financing partner in the Merle Hay Mall loan,” said Liz Holland, CEO of Abbell Associates. “At every step of the way they understood our redevelopment goals and worked hard to bring everything together to complete this exciting project.”
Headquartered in Chicago, Associated Bank’s Commercial Real Estate division is committed to providing its clientele of developers/owners/operators of commercial real estate with financing solutions and an array of products and services that meet the unique demands of their business. The Commercial Real Estate division has offices in Illinois, Indiana, Michigan, Minnesota, Missouri, Ohio and Wisconsin.