A $300 million loan on a megamall located in Lakewood, a suburb near Long Beach, comes due soon — and it is the largest June hard maturity, according to Trepp.
A default appears unlikely. There are no missed payments, and a loan workout is in talks.
Macerich owned the mall before selling it to a joint venture of Pacific Retail Capital Partners, Lyon Living and Silverpeak last summer for $332 million. The price tag included the assumption of a $317 million loan on the real estate, according to a Securities and Exchange Commission filing dated mid-August. The loan had an original balance of $410 million.
The JV announced plans to redevelop the 2-million-square-foot shopping center at 500 Lakewood Center Mall into a mixed-use place that included shopping, dining, living and more the same month.
That debt later moved to special servicing in early January, but back then, Morningstar Credit analysts suggested the transfer could be more proactive than anything because the loan on the mall didn’t mature until the summer, and its new owners wanted to redevelop it.
The commercial mortgage-backed securities loan has a current balance of $309 million, per Trepp and Morningstar. Special servicer commentary via Morningstar notes that the “borrower is working to refinance the loan,” and has requested a modification and/or extension “to allow for the sale of certain parcels to reduce the refinancing risk.” Negotiations are pending, the May commentary stated. The debt works out to around $150 per square foot.
Representatives for Pacific Retail Capital Partners, Lyon Living and Silverpeak did not immediately respond to a request for comment.
Costco, Target, Macy’s and Best Buy are anchors to the roughly 90 percent occupied mall, according to Morningstar and Trepp. So it doesn’t appear to be a Santa Monica Place situation, which was about half empty before Macerich surrendered the retail spot to its lender after a $300 million default. It’s now in the hands of a receiver, which brought on Prism Places to handle.
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