New York-based BGRE has been able to rebrand from its previous name, Brookfield Properties, but it hasn't been able to shake financial pressures on a $260M mortgage tied to a Broward County mall after years of cash flow and occupancy struggles.
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Deutsche Bank National Trust Co. filed a foreclosure suit against Pembroke Lakes Mall LLC on behalf of a commercial mortgage-backed securities trust for Goldman Sachs, claiming that it failed to repay its mortgage by its maturity date in March last year, according to the suit filed in the Broward County Circuit Court.
BGRE and Deutsche did not respond to requests for comment. Polsinelli attorney Marx Calderón, who represents Deutsche in the filing, also did not respond to a request for comment.
Deutsche said the borrower was notified of the default in April 2025 and again in April 2026 and owes a total of $263.8M as of Sept. 1, including principal, interest and default interest.
The Germany-based bank also asked the court to appoint Carmen Spinoso of Spinoso Real Estate Group as receiver of the property, according to the filings.
BGRE had requested a three-year loan extension, but it was not approved, according to Kroll Bond Rating Agency.
About 535K SF of the 1M SF Pembroke Lakes Mall serves as collateral for the loan. The property was last appraised in April this year at $112M — a 73% decrease from the $427M appraised value at closing in 2013, when Goldman Sachs originated the loan, according to KBRA.
BGRE obtained the mall at 11401 Pines Blvd. in 2018 when it acquired shopping mall REIT General Growth Properties. The mall really started to struggle coming out of the pandemic.
Occupancy dropped from 100% to 84% in 2022, The Real Deal reported at the time, citing a Morningstar report.
Even while occupancy at Pembroke Lakes climbed back to 95% in September 2024, cash flow had declined 30%, according to Morningstar. The loan was transferred into special servicing in April last year.
Pembroke Lakes was built in 1992 and renovated in 2006. Tenants include H&M, American Eagle, AMC Theatres and Dillard's, according to its website.
Despite mall values climbing 13% year-over-year nationwide, as The Wall Street Journal reported, Pembroke Lakes is among many malls across the country saddled with debt and growing distress.
Of the 423 CMBS loans totaling $42B that Morningstar tracks attached to 182 malls, 92 loans totaling $8.7B are in special servicing, and 42 loans totaling $3.4B are delinquent.
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