By Kevin Mead From Caribbean Business

Taubman Realty Group has closed on a $320 million loan from U.S. Bank to finance the development of The Mall of San Juan, a 650,000-square-foot shopping and entertainment complex being built in the Puerto Rico capital.

Located in the populous metropolitan area that attracts nearly five million tourists per year, the mall will be the first Caribbean location for major U.S. retailers Nordstrom and Saks Fifth Avenue.

“The Mall of San Juan, our bank’s first commercial real estate deal in Puerto Rico, will be a tremendous asset for the San Juan tourism industry and overall economy,” said Joseph Hoesley, vice chairman of commercial real estate at U.S. Bank. “As a Minneapolis-based company with the Mall of America right in our backyard, we’ve seen firsthand the economic and cultural impact a true shopping ‘destination’ can have on a region.”

Situated on the San José Lagoon in San Juan, the mall will include over 400,000-square-feet of retail shops across two levels, anchored by Nordstrom and Saks Fifth Avenue. The mall is currently under construction and set to open in March 2015.

“The Mall of San Juan will be the premier, high-end shopping destination in the Caribbean,” said Simon Leopold, treasurer and capital markets senior vice president for Taubman. “With its ideal location and diverse mix of retail, dining and entertainment options, the mall will be a must-see attraction for tourists visiting from throughout the region.”

The Taubman Realty Group Limited Partnership is the majority-owned operating partnership of Taubman Centers, Inc.

The Mall of San Juan loan was originated out of U.S. Bank’s commercial real estate office in Chicago. , U.S. Bank is joint lead arranger and administrative agent. J.P. Morgan is joint lead arranger and syndication agent on the loan.

The Mall of San Juan is expected to create 3,500 new jobs when it opens next year.

The $475 million Mall of San Juan is designed to reflect the rich culture and heritage of San Juan. Located adjacent to the San José Lagoon at the south end of the Teodoro Moscoso Bridge, the development is just two miles from the San Juan Luis Muñoz Marín International Airport, the Caribbean’s busiest, and close to the tourism hubs of Isla Verde and Condado.

Taubman remains bullish on Puerto Rico and is still on track to open its Mall of San Juan in early 2015.

The Michigan-based real estate investment trust replaced the original general contractor for the development last year and has seen the total project cost from $405 million to $430 million and now $475 million.

Taubman will develop, lease and manage the shopping center. San Juan-based New Century Development, meanwhile, plans to construct a 225-room hotel and casino adjoined to the mall, as well as an office tower project at the site. The hotel is expected to operate under the Crowne Plaza flag.

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