Struggling Neiman Marcus scores loan from Credit Suisse for Coral Gables store

Upscale retailer has been an anchor tenant since 743K sf mall opened in 2002
By Katherine Kallergis | July 15, 2019 12:56PM

Neiman Marcus CEO Geoffroy Van Raemdonck (Credit: Getty Images)

Neiman Marcus CEO Geoffroy Van Raemdonck (Credit: Getty Images)

Neiman Marcus closed on a $37.38 million loan from Credit Suisse for one of its South Florida stores as the high-end retailer struggles to regain its footing.

The company secured the financing on July 3 for its Shops at Merrick Park location, at 390 San Lorenzo Avenue in Coral Gables, less than a month after Moody’s Investors Service upgraded Neiman Marcus Group’s probability of default rating.

Neiman Marcus could not immediately be reached for comment.

The loan agreement is part of a multistate mortgage, and it extends the credit agreement between Neiman Marcus and lead lender, Credit Suisse.

In May, when Moody’s upgraded the retailer’s probability of default rating, it wrote, “the company’s successful completion of the term loan amendment extending the term loan maturity, issuance of new second lien notes, and exchange offer for its senior unsecured notes provides Neiman more time to improve its business, but we expect free cash flow to be negative as leverage remains at unsustainable levels. The risk of a future distressed exchange remains elevated,” according to a release.

Neiman Marcus, with at least 135,000 square feet at the Shops at Merrick Park, has been an anchor since the upscale outdoor shopping mall was completed in 2002. Brookfield Properties acquired the property at 358 San Lorenzo Avenue when it took over General Growth Properties in 2018. Nordstrom and Equinox Fitness also anchor the mall, which has 742,871 square feet of retail space and 98 retailers, according to Brookfield’s website.

Neiman Marcus Group, based in Dallas, Texas and led by CEO Geoffroy Van Raemdonck, has 42 locations nationwide, including one at the Galleria at Fort Lauderdale and another at Bal Harbour Shops.

Whitman Family Development recently closed on a $550 million loan from MetLife for Bal Harbour Shops, as the high-end shopping center undergoes a major expansion. Barneys New York will also open its first flagship in the Southeastern United States at Bal Harbour Shops.

In Manhattan, Neiman Marcus recently opened its 188,000-square-foot shop at Hudson Yards.