Mall of America, behind on mortgage, fights foreclosure

Mall owner enters cash-management agreement with special servicer

TRD NATIONAL /
Aug.August 20, 2020 04:30 PM
Mall of America and Triple Five Group chairman Nader Ghermezian (Mall of America by KEREM YUCEL/AFP via Getty Images and Raymond Boyd/Getty Images)

Mall of America and Triple Five Group chairman Nader Ghermezian (Mall of America by KEREM YUCEL/AFP via Getty Images and Raymond Boyd/Getty Images)

The country’s biggest shopping mall is trying to stave off foreclosure after falling months behind on its $1.4 billion mortgage.

Triple Five Group, which owns the Mall of America, has entered into a cash-management agreement with a special servicer, CWCapital Asset Management, according to the Star Tribune.

Canada-based Triple Five began to fall behind on payments several months ago and the loan was transferred to special servicing in May. A representative reported that revenues had plunged 85 percent, according to the Tribune.

Triple Five is a family firm led by CEO Don Ghermezian and chairman Nader Ghermezian. It has been struggling for years to get the American Dream Mall in New Jersey’s Meadowlands going.

Malls across the country have been battered by the pandemic, which has forced many retailers to close and triggered a slew of lawsuits between tenants and landlords over unpaid rent.

A number of struggling retailers, including Tailored Brands, Brooks Brothers and J. Crew, have filed for bankruptcy. Last month, the anchor tenant of the luxury Hudson Yards mall in New York, Neiman Marcus, said it would never reopen the West Side location. The Texas-based department store filed for bankruptcy protection in May.

Differences in state pandemic rules mean some malls have been allowed to reopen, while others remain shut. Mall of America reopened in June and tenant rent collection reached 50 percent in July, up from 33 percent in April.

The mall owner’s cash-management agreement comes with greater reporting requirements and remittance of net cash on a monthly basis, according to Trepp. [Star Tribune] — Sylvia Varnham O’Regan


Related Articles

arrow_forward_ios
Wynwood Works rendering and Udonis Haslem (Credit: Bobby Metelus/Getty Images)

Magellan Housing and Miami Heat star Udonis Haslem to build Wynwood apartment project on city-owned land

Magellan Housing and Miami Heat star Udonis Haslem to build Wynwood apartment project on city-owned land
Founder and CEO of IT'SUGAR Jeff Rubin, and BBX CEO Alan Levan (Credit: Denise Truscello/Getty Images)

It’Sugar files for bankruptcy protection after sales sour

It’Sugar files for bankruptcy protection after sales sour
River Landing, Andy Hellinger and Coralee Penabad

Years in the making, $425M mixed-use Miami River development opens

Years in the making, $425M mixed-use Miami River development opens
Shoppes of Coral Way (Google Maps)

South Florida investor wants to sell Coral Way retail center for $24M

South Florida investor wants to sell Coral Way retail center for $24M
Ram Realty CEO Casey Cummings and 15601 Southwest 127th Avenue, Miami (Credit: Google Maps)

University of Miami sells land for Walmart-anchored project

University of Miami sells land for Walmart-anchored project
1200 N State Road 7 and 5300 Coconut Creek Parkway (Credit: Google Maps)

CVS, drive-thru bank in Margate fetch $7M

CVS, drive-thru bank in Margate fetch $7M
Scott Schoenlank, Andor Kovacs and 6041-6047 Kimberly Boulevard, North Lauderdale (Linkedin, Google Maps)

Restoration 1 franchise founder buys North Lauderdale office and retail center for $6M

Restoration 1 franchise founder buys North Lauderdale office and retail center for $6M
1920 Alton Road and Phil Gutman (Google Maps)

Italian restaurateur lists Sunset Juice Cafe property for $24M

Italian restaurateur lists Sunset Juice Cafe property for $24M
arrow_forward_ios

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

Loading...