One of the newer malls in the Detroit area is also the latest to go into receivership.
Starwood Capital Partners, based in Miami Beach, Florida, which owns the Partridge Creek Mall in Clinton Township, has been in default on $ 725 million of commercial mortgage-backed debt securities secured by Partridge Creek and three other malls in Florida, Virginia and North Carolina, according to data from Trepp LLC, a New York-based company that tracks CMBS data.
“Discussions with Borr (the borrower) did not result in an acceptable resolution strategy, which is why SS (special service) has entered into discussions with a receiver and plans to move forward with proceedings. courts in each jurisdiction for the receiver to be appointed in each property, “the loan commentary posted on CoStar Group Inc., a Washington, DC-based real estate information service, dated this month reads as follows.
It would be join Fairlane Town Center in Dearborn in receivership. This property is under the control of Chris Neilson, managing partner of Trigild in Dallas, who declined to comment on the situation to Crain’s.
The February loan commentary for the Fairlane loan says the receiver is “working with the lender to determine the right time to sell each of the assets.”
“If it is determined that the time has come to begin the process, it is expected that the first property to come to market will be the Fairlane Mall, as the other two properties have activity that needs to be completed to help drive the value of every asset, ”concludes Fairlane’s comment.
Partridge Creek is managed by the Royal Oak office of JLL; an email was sent to the general manager of the establishment on Thursday afternoon to solicit comments. A message was sent to a Starwood spokesperson seeking comment on Thursday.
The identity of the recipient is not known.
The mall’s income has plummeted.
Between January 1, 2018 and December 31, 2018, the mall grossed $ 20.38 million. A year later, between January 1, 2019 and December 31, 2019, he grossed $ 17.68 million. The most recent one-year period available, October 1, 2019 to September 30, 2020, generated revenue of $ 14.63 million.
The mall’s net operating income during those three periods fell from $ 11.13 million to $ 6.71 million, according to Trepp.
The Partridge Creek loan commentary indicates that all four properties – Partridge Creek, The Mall at Wellington Green in Willington, Florida, MacArthur Center in Norfolk, Virginia, and Northlake Mall in Charlotte, North Carolina – are severely underwater , with an appraisal at the end of March 2020, valuing them at $ 366.7 million, just over half of the original loan balance of $ 725 million. The balance is now $ 681.6 million.
Starwood has owned the malls since 2014 when it paid $ 1.4 billion to what was then Taubman Centers Inc. (now based in Bloomfield Hills Taubman Co. LLC) for them and five others.