Ingram Park Mall on the West Side is being sold for $ 100.7 million in a foreclosure auction

Affected by the coronavirus pandemic, a distressed West Side shopping mall owned by one of the largest US retail landlords was foreclosed by its lender this month.

A Morgan Stanley affiliate acquired Ingram Park Mall at 6301 NW Loop 410 for a $ 100.7 million bid in a foreclosure sale on July 6th.

Long-time owner Simon Property Group built the mall, covering approximately 1.1 million square feet, more than 40 years ago.

The foreclosure sale took place a month after Simon’s loan was due. A spokeswoman for Simon didn’t respond to a request for comment Thursday, so it’s not clear whether she tried to refinance the property or simply decided to no longer own the mall.

The sale did not include Dillard’s, JCPenney, Sears or Macy’s retail space.

Shopping malls across the country have been devastated by the COVID-19 outbreak. Restrictions reduced pedestrian traffic and forced retailers to close stores for months, leading them to seek rental relief from landlords. Customers who couldn’t trust each other or were hesitant turned to online shopping.

Simon Property Group, an Indianapolis-based real estate fund, turned over several malls to lenders during the pandemic, including properties in Ohio, Wisconsin and Connecticut, MarketWatch reported in November.

Citing the impact of the pandemic on malls and expectations of higher losses, Fitch Ratings downgraded a loan pool in November, which included Ingram Park Mall – one of the largest loans in the portfolio.

Fitch cited “the mall’s declining performance metrics, which include a year-over-year decline in occupancy and cash flow” and “limited lease traction.”

A government filing reveals that Simon borrowed $ 122.3 million for the mall and owed approximately $ 9.7 million annually in principal and interest.

The mall’s appraised property fell from nearly $ 84 million last year to $ 62.5 million this year, the Bexar Appraisal District website shows.

The mall was built in 1979 and last renovated in 2018. It had already lost two main tenants before the pandemic: Dillard’s Home Center in 2016 and Sears in 2018, which together occupy about 248,465 square feet, according to Fitch.

Still, Simon reported that Ingram Park Mall had a 91.7 percent occupancy rate at the end of last year.

Large shopping malls in San Antonio have largely remained full during the pandemic, partly because few new retail spaces are being built and new tenants are taking over empty storefronts from struggling retailers.

Dallas-based Weitzman said about 93.6 percent of the region’s retail space was occupied by mid-year. This is unchanged from the second half of 2020 and slightly lower than 94 percent in the first half of 2020 and 94.5 percent at the end of 2019.

Simon owned more than 200 retail properties late last year. During the pandemic, she said she agreed to postpone or cut rental payments for a “range” of her tenants.

The sale of the Ingram Park Mall means Simon no longer owns any malls in San Antonio. It also once owned Windsor Park Mall – now the home of Rackspace Technology Inc. – and Rolling Oaks Mall, owned by Washington Prime Group, a real estate investment company that was spun off from Simon in 2014.

Simon’s closest area is the San Marcos Premium Outlets, a 735,000 square foot retail property she acquired in 2010.

The lender’s trustee declined to comment. A Morgan Stanley representative did not respond to a query on Thursday.

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