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.