Westside Pavilion Loan Lands On Servicer Watchlist
Trouble is brewing for Westside Pavilion.
The $142.3M Westside Pavilion loan was put on the servicer watchlist earlier this month.
"[The] property performance has been trending downward," according to the watchlist commentary.
The loan on the more than 500K SF West LA mall was underwritten with a debt-service coverage ratio of 1.40. The ratio increased favorably over the years to 1.55 two years ago, then fell to 1.28 last year. Financials from the first half of the year show it has fallen to 0.91.
The mall's occupancy has shrunk from 96% to 87% over the past three years.
Westside Pavilion's in-line space is 77% occupied, and the forecast is trending downward for Westfield Pavilion.