Southland Mall’s troubled $65M CMBS loan for sale

Investcorp defaulted on the loan in April, prompting a foreclosure suit by Wells Fargo as a representative of the CMBS investors

Miami /
Oct.October 09, 2020 02:30 PM
Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL's Tom Hall and Danny Finkle (Google Maps, JLL)

Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL’s Tom Hall and Danny Finkle (Google Maps, JLL)

A $65 million CMBS loan on Southland Mall in Cutler Bay is being shopped, after its former owner defaulted on it earlier this year.

JLL is marketing the loan, which is tied to the 990,000-square-foot indoor mall at 20505 South Dixie Highway. The mall’s former owner, Investcorp, defaulted in April and handed the keys over to its CMBS lenders this summer. The mall is currently in foreclosure and a receiver was appointed by a Miami-Dade Circuit Court judge.

The loan is structured with a two-year term with three one-year extension options, according to a press release. The JLL Capital Markets team representing the seller includes Tom Hall and Danny Finkle.

“We predict a significant uptick in transaction volume in the first half of next year,” Hall told The Real Deal. “The smart sellers are getting out ahead of that wave.”

Hall said JLL doesn’t have an asking price, but he doesn’t view the property as distressed because of redevelopment potential and because the mall is in an Opportunity Zone.

Investcorp defaulted on loan payments in April, prompting a foreclosure suit by Wells Fargo as a representative of the CMBS investors.

CMBS-backed loans can be harder and lengthier to modify, with no refinancing or additional debt allowed.

In April, South Florida’s retail market had an outstanding CMBS loan balance of $6.3 billion, according to data provided by Trepp. It was the third highest CMBS exposure of any metropolitan statistical area after New York City and Los Angeles.

The commercial mortgage-backed securities loan for another mall, the 317,513-square-foot Westfield Broward mall, at 8000 West Broward Boulevard in Plantation, entered special servicing in June.

Twenty-five percent of all hotel CMBS loans and about 17 percent of all retail CMBS loans were being handled by special servicers by the end of August, according to Trepp.


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