2009-03-31reuters.com

A Long Island mall partly owned and managed by Simon Property Group SPG.N has defaulted on a $124 million balloon mortgage payment after two of the main stores there filed for bankruptcy.

"Right now there's a shortage of refinancing dollars in the market place and yes, they're not going to be alone," said Thomas Fink, senior vice president of Trepp, which tracks the commercial real estate loans. The loan for the Mall at the Source had been securitized as bonds in a commercial mortgage-backed securities (CMBS) trust.



Comments:

mortgagemess at 10:41 2009-04-01 said:
Sorry no sympathy for Simon...they are one of the worst to deal with..have friends who had stores in the Simon malls..they make you use their registers so as to monitor your sales..and if your sales go above a certain amount, Simon not only collects rent but gets a piece of your "profits" above a certain amount..they work like the Mafia basically...

That is why stores like Bath and Body Works, Kirklands and many others are leaving and moving into shopping centers that have solid anchor stores like Kohls and Target..

It makes more sense to pay just rent and have the ability to make enough profit to keep people at their jobs and the company in existence... Permalink

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