America's largest mall is reportedly 2 months behind on a $1.4 billion loan
- The Mall of America, the biggest mall in the US, has missed two months of payments on a $1.4 billion commercial mortgage-backed security, Bloomberg reported Thursday, citing a filing by Wells Fargo, the loan's master servicer.
- The filing states that the loan is currently due for April and May payments, according to the report. In addition, the borrower has notified Wells Fargo of COVID-19-related hardships.
- The Mall of America closed March 17 amid sweeping lockdowns to curb Covid-19. It plans to reopen some retail shops June 1.
- Read more on Business Insider.
The biggest mall in the US is experiencing financial hardship as the coronavirus pandemic slams the retail industry.
The Mall of America, based in Bloomington, Minnesota, has missed two months of payments on a $1.4 billion commercial mortgage-backed security, Bloomberg reported Thursday. The report cited a filing by Wells Fargo, the trustee of the debt and a master servicer of the loan.
The filing states that the loan is currently due for April and May payments, according to the report. In addition, the borrower has notified Wells Fargo of COVID-19-related hardships.
It's the latest mall to show signs of struggle amid the coronavirus pandemic, which shutdown non-essential businesses across the country in mid-March to contain the disease. Many retailers and their landlords are struggling to pay their rent and mortgages as physical stores are shut down and consumers shift to shopping online.
In April, many mall owners reported low rent-collections for the month, Bloomberg reported. The same month, 75% of tenants in the Manhattan Hudson Yards development withheld rent payments, the FT reported.
Even as states begin to slowly reopen, there are many retailers that won't make it through the shutdown unscathed — J.Crew and JCPenney both filed for bankruptcy, among others.
The Mall of America, a behemoth center that spans 5.6 million square feet and includes more than 500 shops, 50 restaurants, an aquarium, movie theater, and indoor theme park, was closed March 17.
It plans to begin reopening June 1, beginning with some retail stores. Food services and the other attractions at the mall will follow after.
"Throughout the past eight weeks, we have been working with state and national organizations to help identify and establish industry-wide reopening safety protocols," the mall said in a statement posted to its website. It will continue to update its reopening plan as necessary, it said.
The owners of Mall of America, the Ghermezian family, also own the American Dream Mall in New Jersey. The retail wing of the American Dream Mall was scheduled to open in March but had to be postponed due to the coronavirus pandemic. It's since turned part of the facility into a Covid-19 testing center.
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