CRED iQ in the News – Regional Mall Distress

CRED iQ was featured in the news, providing supporting data for commercial real estate loans.

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A great article was published on MarketWatch this week by @JoyWiltermuth profiling buyers of distressed regional malls across the country. For those of our followers that missed the story, here is a link to the article. CRED iQ had the pleasure of providing data for regional malls that have become distressed to the level that the owners have or are willing to transition titles to the properties back to lenders. This group of assets includes malls that have become REO since the pandemic, malls that have entered receivership, malls in negotiation for deed-in-lieu of foreclosure agreements, and malls where foreclosure is likely in the near term.

Here is a list of the 5 largest malls that have become REO since the onset of the pandemic:

REO Title Acquisitions Since April 2020 – Regional Malls

Property NameLocationOutstanding Debt
Town Center at CobbKennesaw, GA$173,449,158
Florence MallFlorence, KY$89,404,415
Southland MallCutler Bay, FL$65,159,858
Newgate MallOgden, UT$58,000,000
Oakdale MallJohnson City, NY$47,464,494

More additions to the list are likely to occur over the next 12 to 18 months as foreclosures and deed-in-lieu agreements continue to be consummated. Here is a sample list of some of the largest loans that are on the path to foreclosure and subsequent title transfer:

Likely Near Term REO Title Transfers – Regional Malls

Property NameLocationOutstanding Debt
Mall St. MatthewsLouisville, KY$164,710,290
Park Place MallTucson, AZ$164,332,652
Westfield Citrus ParkTampa, FL$123,939,920
Ingram Park MallSan Antonio, TX$120,157,888
Mall at Tuttle CrossingDublin, OH$111,961,149

To explore the data more in depth, click here.