Brookfield Asset Management has secured a $435 million commercial mortgage-backed securities refinancing for Tysons Galleria, marking a significant vote of confidence in the Northern Virginia luxury mall's performance despite broader retail headwinds.
The mall faces uncertainty from two anchor tenants, Neiman Marcus and Saks Fifth Avenue. Their parent company, Saks Global, filed for Chapter 11 bankruptcy protection this month.
Morgan Stanley, Bank of America and Goldman Sachs are expected to originate the loan in early February, according to bond analysis by S&P Global Ratings. The five-year, fixed-rate commercial mortgage loan is to carry a 4.9% interest rate and mature in March 2031.
The loan replaces $425 million in existing debt and funds $7.4 million in closing costs while reserving $2.6 million for other landlord expenses.
S&P Global evaluated the refinancing of the 740,847-square-foot, Class A super-regional mall. The loan collateral covers 488,847 square feet, excluding two non-collateral anchor tenants.
The refinancing comes as Tysons Galleria has posted robust sales growth. Same-store sales excluding anchors reached $573 million in the trailing 12 months ended in November, according to S&P Global's CMBS bond presale analysis. That figure nearly doubles the mall's 2019 sales of $195 million. Tenant sales outside anchor stores exceeded $2,000 per square foot in 2025, reaching $2,110 per square foot.
Net operating income has climbed 38% since 2019, rising from $32 million to $44.3 million in 2025, according to S&P Global. The mall maintained 91.9% occupancy as of Dec. 31. Average base rent stands at $85.18 per collateral square foot, with gross rent at $137.71 per square foot.
"The outstanding loan execution represents the market value of GGP, as well as the strength of Tysons Galleria and the retail real estate industry," Kevin McCrain, CEO of GGP, told CoStar News in an email. GGP is the shopping center subsidiary of Brookfield Asset Management that received the loan.
Though Neiman Marcus and Saks Fifth Avenue remain open, the future is unclear for the luxury retail locations. Saks Global owns the buildings and underlying land but still contributes about 2% of Tysons Galleria's gross rent, according to S&P Global.
Across the mall, about 18 tenant leases, representing 26.6% of gross rent, include co-tenancy clauses allowing for potentially reduced rent payments if anchors such as Neiman Marcus and Saks Fifth Avenue go dark, S&P said.
Still, other major luxury tenants are expanding at Tysons Galleria. Cartier is doubling its 6,000-square-foot space starting next month, adding $1.4 million in annual base rent, according to S&P Global. Louis Vuitton moves into a two-level concept in August, expanding by 7,000 square feet and paying an additional $1.3 million in base rent. Liljenquist & Beckstead is increasing its space by 2,500 square feet, adding more than $340,000 in base rent beginning in February.
The CMBS transaction values Tysons Galleria at $1 billion, according to S&P. Brookfield is said to maintain about $567 million in equity after the loan closing.
Tysons Galleria sits in McLean, Virginia, a suburb of Washington, D.C. The mall connects directly to the Washington Metro rail line within a master-planned community featuring nearly 2 million square feet of office space.