CMBS loan for Starwood’s Mall at Wellington Green is in trouble

Anchor tenant Nordstrom left the Wellington mall earlier this year

Nov.November 19, 2019 04:15 PM
Mall at Wellington Green Barry Sternlicht (Credit: Google Maps)

Mall at Wellington Green and Barry Sternlicht (Credit: Google Maps)

A $680 million commercial mortgage-backed securities loan for a Starwood mall portfolio that includes a large Wellington property has been sent to special servicing, according to Trepp.

The four-property portfolio is owned partly by Starwood Property Trust. Loans are generally sent to special servicing when they are either in default or when a property has lost a major tenant.

The Mall at Wellington Green, which lost Nordstrom as one of its main anchors earlier this year, is the largest of the four properties backing the loan. The portfolio also includes the MacArthur Center in Norfolk, Virginia, the Northlake Mall in Charlotte, North Carolina, and The Mall at Partridge Creek in Clinton Township, Michigan.

The loan was set to mature in November 2017, but it was extended until November 2019. according to Trepp. It was not paid back this month.

After it lost Nordstrom as an anchor, Starwood proposed redeveloping the Mall at Wellington Green, to include multifamily units, restaurants and entertainment space, and a hotel, according to the Palm Beach Post. The hotel would include a pool, deck and beach, and the project would be centered around a 3.5-acre Crystal Lagoon.

The Mall at Wellington Green, Wellington’s biggest taxpayer, saw its taxable value drop 32 percent this year to $150 million as a result of the Nordstrom departure, according to the Palm Beach County Property Appraiser’s Office.

Starwood’s Starwood Retail Partners bought the property in 2014 for $341.1 million, marking the largest real estate deal ever recorded in the county at the time.

Related Articles

Weingarten Realty Investors Andrew M. Alexander and Village Green Center at 2803 South State Road (Credit: Google Maps)

Weingarten Realty pays $36M for Wellington shopping center

Andreas Helgstrand and 13560 Indian Mound Road (Credit: Facebook, Relator, and iStock)

Helgstrand Dressage buys 80-acre Wellington equestrian estate

Glenn Straub (Credit: iStock)

Wellington developer Glenn Straub charged with larceny

David MacNeil, and 13700 Quarter Horse Trail, Wellington

WeatherTech founder buys Wellington estate for $23M

Tommy Lee Jones and 12550 40th Street South (Credit: Getty Images, Zillow, and iStock)

Tommy Lee Jones sells Wellington equestrian estate for $11M

Mark Bellissimo and the International Equestrian Center (Credit: Getty Images)

Mark Bellissimo buys land near International Equestrian Center

Glenn Straub and the Palm Beach Polo and Country Club property (Credit: Google Maps)

Glenn Straub sells piece of Wellington polo club after failed development attempt

Daily Digest Miami

How Epstein hid ownership of second island, CK Holding Group buys Miramar retail: Daily digest