A half-billion-dollar loan tied to New England's largest mall has been transferred to special servicing after the owner ran into issues maintaining some retail tenants.

The $505M loan attached to the Natick Mall was transferred to special servicer Situs due to imminent monetary default after maturing at the beginning of November, according to servicer commentary in Morningstar Credit's database.

Owner Brookfield Properties faced issues with the loan, which is tied to its 1M SF central portion of the mall, after losing a major tenant, and dozens of other leases are set to expire.

The owner is working on a deal to extend the loan's maturity date, a Brookfield spokesperson said in a statement to Bisnow.

"We have an agreed upon multi-year extension with our lender that is going through the process now," the spokesperson said.

Lord & Taylor filed for bankruptcy in 2020, leaving behind 113K SF that has been planned to become a lab building but still stands empty since closing more than four years ago, the Boston Business Journal reported.

Wegmans vacated its 137K SF but is current on rent, and its lease runs through 2037. The mall also has 57 tenants with leases set to expire in the next year, including Forever 21, which has a lease expiring at the end of 2024.

The loan was put on Morningstar's watchlist in June, and Senior Vice President David Putro told Bisnow at the time that there was “lots of risk” with the loan.

“Cash flow is adequate to keep it from defaulting during the course of the loan, but refinancing it will likely be tricky,” Putro said.

The loan was the second largest to go into special servicing in November, according to Trepp.

The mall has seen retail interest with Mango opening its first Massachusetts location in April and Bosse Pickleball opening its doors in the former Neiman Marcus department store, owned by Bulfinch Cos.

The Natick Mall was built in 1966 by businessmen William Lane, Stephen Mugar and John Brennan. It was renovated in 2017.

Brookfield became the owner of the mall in 2018 after acquiring its prior owner, General Growth Properties, for more than $9B. The acquisition launched Brookfield to one of the biggest mall owners in the country. The landlord had big dreams for the 125 malls in its portfolio but has made little progress in turning them into the mixed-use “mini-cities” it once envisioned.

UPDATE, DEC. 7, 1 P.M. ET: This story has been updated with a statement from Brookfield.