Dying Malls Put $47.5B In Loans At Risk

Shopping mall

About $47.5B in loans backed by retail properties will mature over the next 18 months—coinciding with a tighter CMBS market, where many properties get their lending.

Even the second-biggest US mall owner, General Growth Properties, didn’t make its last payment on a $144M loan backed by Suburban Detroit’s Lakeside Mall, Bloomberg reports.

Negotiating extensions or refinancing on the looming wall of maturing loans may be difficult for some mall owners, as anchor tenants like Macy’s and Nordstrom post poor earnings forecasts—and chains like Aeropostale and Sports Authority file for bankruptcy.

“For many years, people thought the retail business in the US was a bit overbuilt,” Moody’s Investors analyst Tad Philipp tells Bloomberg. “The advent of online shopping is kind of accelerating the separation of winners and losers.” [Bloomberg]

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