mall

Simon, WP Glimcher Each Lose Malls to Foreclosure; Kimco Mall Facing Similar Fate

While the overall retail property sector appears to be strengthening, a handful of loans for lower-quality shopping centers and malls financed at the height of the previous CRE cycle are coming due now and proving to be a thorn in the side of publicly traded REITs.

Simon Property Group and WP Glimcher both turned malls back over to the lenders this week, and Kimco Realty Corp. disclosed that it doesn’t expect one of its joint venture-owned malls will be able to refinance a loan set to come due this fall.

All three of the malls involved in the foreclosure actions were last financed in 2006 and securitized in mortgage backed bond conduits.

Simon Property’s Greendale Mall in Worcester, MA, and WP Glimcher’s Merritt Square Mall on Merritt Island, FL, were transferred to REO status. And Kimco’s Cheyenne Commons in Las Vegas, which is owned in a joint venture with Big Shopping Centers USA, was moved into special servicing.

Rest here…

~

4closureFraud.org