search

The Real Deal Logo

Trending

Housing deal finally passes; here are the detailsHousing deal finally passes; here are the detailsGlossier founder is buyer of $22M Brooklyn townhouseGlossier founder is buyer of $22M Brooklyn townhouseBillionaire hedge funder Larry Robbins makes South Florida moveBillionaire hedge funder Larry Robbins makes South Florida moveBlackstone’s property fund begins climb from bottomBlackstone’s property fund begins climb from bottom
New York

Atlantic City mall “really is near worthless”

Its not just gamblers taking big losses at Atlantic City. The Pier Shops at Ceasars, once valued at $210 million and backed by a top-rated commercial-mortgage bond, has been deemed essentially worthless. According to Bloomberg News, no bidders in an auction were willing to pay more than $25 million for the $80 million mortgage on the property, held by loan servicer C-III Capital Partners.

The property was valued at $56.5 million in January 2011, four years after it was estimated to be worth $210 million.

Sign Up for the undefined Newsletter

“Most people in the CMBS market have gotten the sense that this asset really is near worthless,” said Lea Overby, a debt strategist at Nomura.

Bloomberg said the auction results signal bondholders are going to take a hit of as much as $68 million on the property, marking the first ever principal loss for a triple-A rated bond. [Bloomberg]

Tags
Atlantic City