Westfield Broward mall’s $95M CMBS loan heads to special servicing

The mall’s anchor tenants include Macy’s, Dillard’s and JCPenney

Miami /
Aug.August 06, 2020 05:45 PM
Westfield Broward mall, CEO Christophe Cuvillier

Westfield Broward mall, CEO Christophe Cuvillier

UPDATED, Aug. 10, 3:20 p.m.: The owner of Westfield Broward mall is more than two months behind on payments for its $95 million loan.

A commercial mortgage-backed securities loan for the sprawling 317,513-square-foot mall at 8000 West Broward Boulevard in Plantation has entered a type of refinancing known as special servicing, according to data provider Trepp. The owner, Unibail-Rodamco-Westfield, has not made a payment on the loan since April, according to Trepp.

The CMBS loan is broken up into two parts: $42 million and $53 million. Both went into special servicing in June, Trepp data shows.

The largest tenant backing the CMBS loan at the mall is Regal Cinemas, which occupies 55,823 square feet and is currently closed. Other tenants include H&M, which occupies 22,177 square feet. And anchor tenants include Macy’s, Dillard’s and JCPenney, which filed for bankruptcy in mid May.

After publication, Westfield Broward Management said in a statement,  “As a result of the COVID-19 pandemic, like many businesses, we are in the process of renegotiating the relevant aspects of our debt service agreement on the property, and the center continues to operate to serve the Broward community.”

The South Florida Business Journal first reported the news.

Unibail-Rodamco acquired Westfield Group in 2018 for about $25 billion. Westfield Group had purchased Westfield Broward, along with the Westland Mall in Hialeah, for $400 million in 2007. The mall in Broward was built in 1978 and was renovated in 2013.

Paris-based Unibail-Rodamco-Westfield has a portfolio worth more than 60.4 billion Euros (or $71.7 billion) as of June 30, according to its website. The company owns more than 89 shopping centers in Europe and the United States.

Many retail properties are financed by CMBS loans. The loans can be especially problematic for borrowers, since they are harder to restructure than a conventional mortgage when they run into trouble, and can only be restructured through special servicing.

In some cases, lenders could take over properties with CMBS debt. Wells Fargo is currently seeking to foreclose on Southland Mall in Cutler Bay after alleging the mall owner defaulted on its $65.1 million CMBS loan.


Related Articles

arrow_forward_ios
The Estate Companies’ principal Jeffrey Ardizon and managing principal Robert Suris along with a rendering of Soleste on the Bay (Form Group, The Estate Companies, Getty Images)
Estate proposes 360-unit North Miami Beach rental tower
Estate proposes 360-unit North Miami Beach rental tower
Terra Group's David Martin and the CentroCity project at 3825 Northwest 7th Street (Terra Group, Getty)
Terra’s CentroCity Little Havana project nets $230M in financing
Terra’s CentroCity Little Havana project nets $230M in financing
Gatsby Enterprises'  Babak Ebrahimzadeh with 25 and 45 Northeast Second Avenue, as well as at 220 Northeast First Street (Loopnet, LinkedIn)
All aboard! Gatsby buys railroad-themed Delray Beach retail plaza for $30M
All aboard! Gatsby buys railroad-themed Delray Beach retail plaza for $30M
RK Centers Ranaan Katz with 1400-1484 East Hallandale Beach Boulevard (Loopnet)
Raanan Katz buys Hallandale Beach shopping center
Raanan Katz buys Hallandale Beach shopping center
Longpoint Realty Managing and Founding Partner Dwight Angelini and the El Paraiso shopping center at 1700 and 1800 West 68th Street in Hialeah (LinkedIn, Google Maps, Getty)
Longpoint picks up Hialeah shopping center for $43M
Longpoint picks up Hialeah shopping center for $43M
Federal Realty CEO Donald Wood and The Shops at Pembroke Gardens at 527 Southwest 145th Terrace in Pembroke Pines (Getty Images, Pembroke Gardens, Federal Realty)
Federal Realty buys Pembroke Pines shopping plaza for $180.5M
Federal Realty buys Pembroke Pines shopping plaza for $180.5M
From left: TRP's President Daniel Firtel, MV Real Estate Holdings' Alex Mantecon, and TRP's Brandon Johnson with 8303 SW 40th Street
Who wants Cookies? National cannabis firm opening dispensary in Westchester
Who wants Cookies? National cannabis firm opening dispensary in Westchester
From left: RK Centers principal Ranaan Katz and Seritage CEO Andrea Olshan in front of the shopping center at 1460 West 49th Street in Hialeah (Google Maps, Seritage Growth Properties, RK Centers)
Seritage flips Hialeah shopping center for $28M, banking $6M profit in hours
Seritage flips Hialeah shopping center for $28M, banking $6M profit in hours
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...