The Southland Center shopping mall is almost flooded with commercial mortgage-backed debt. latest signs of distress At the Taylor property at 23000 Eureka Rd.
Data provided by New York City-based Trepp LLC, which tracks CMBS loans, showed the mall was valued at $66.9 million in September, up from $78.75 million from 2012 after launching special services. We owe $64.5 million in loans to Barclays.
Special servicer Rialto Capital Advisors LLC was appointed to the 52-year-old mall in June, according to Trepp data. Wells Fargo was the master servicer. The Master Servicer is usually tasked with collecting monthly payments, while the Special Servicer is usually called upon default by the owner in her June.
The special servicer can decide whether to foreclose the loan or arrange a workout contract or loan modification.
A spokesperson for Toronto-based owner Brookfield Properties was emailed Tuesday and Friday seeking comment.
The 905,000-square-foot mall’s net cash flow has declined each year since 2018, when it was $10.1 million, according to Trepp data. Last year it was $8.4 million. Revenue has declined every year since 2019 when it was $18 million. Last year it was $15.8 million.
Brookfield acquired the mall’s former owner, New York City-based Rouse Properties Inc., in 2016 in an all-cash transaction reportedly worth $2.8 billion.
This mall is one of several malls in the area that have withstood the challenges of recent years.
Recently, Dearborn’s Fairlane Town Center has new owners After loan default. A mall on Partridge Creek in Clinton Township is also facing CMBS debt problems. and fell into trusteeship.
Southland is one of four regional malls built by the JL Hudson department store company. Two of these malls are currently in a state of redevelopment for new uses. The Northland Center in Southfield is primarily used as mixed-use residential and Eastland as industrial/warehouse space.
The Northland, Southland, Eastland and Westland centers were designed by Victor Gruen.