As of June, Mall of America is 60 days delinquent on its $1.4 billion mortgage and is negotiating with a special servicer for new terms. The long-delayed American Dream project, which barely started opening when the pandemic hit, has at least $2.8 billion in debt, much of it borrowed in 2017. But some retail experts say it is too early to count out the Canada-based company. Triple Five has in its favor the reluctance of creditors to foreclose on challenged properties, especially those being managed by leading operators with decades of experience.
- Dig Deeper: American Dream’s construction loans are more risky for Triple Five than the municipal bonds because the collateral includes stakes in Mall of America and another mall. Nuveen is a major investor in the municipal bonds backing American Dream, and expressed confidence in the project in a statement to the WSJ. Starwood Property Trust, one of the construction loan creditors, declined to comment. (WSJ)
The pandemic has provided an extra boost to landlords leasing to biotechnology, pharmaceutical, and other life-sciences businesses. Alexandria Real Estate Equities, the largest life-sciences real-estate investment trust in the U.S., last week raised $1.1 billion through a new share offering.
- Blackstone and Brookfield are bullish: BioMed Realty, which was taken private by Blackstone in a close to $9 billion deal in 2016, is moving ahead with a development pipeline that will add 2.5 million SF its existing 11 million SF-portfolio. In April, Brookfield closed on its purchase of a 50% stake in Harwell Campus, a 700-acre life-sciences campus near the University of Oxford, for more than $251 million. (WSJ)
- Colony Capital is in jeopardy of losing control of its two largest CMBS-financed hotel portfolios — the 89-property, 8,585-key Tharaldson portfolio and the 48-property, 6,402-key Inland portfolio. Both are on track to be transferred to the control of receivers as negotiations with lenders have failed to yield long-term solutions. (TRD)
- The parent company of century-old women’s apparel brand New York & Co. has filed for bankruptcy protection and plans to liquidate all its stores after being hurt by forced closures and supply-chain issues during the coronavirus pandemic. RTW said it has started store-closing sales and inventory liquidations at its 387 retail stores in 32 states while it considers a sale of its e-commerce business and intellectual property. (WSJ)
- Operator Marriott International advised employees in May that the towering, 452-room pleasure palace at 701 Seventh Avenue would close for good on Aug. 13, owing to a pending bank-loan default by property owner Maefield Development, which is led by developer/investor Mark Siffin. But sources told CO that a deal has been worked out with lead lender Natixis and other parties to clear up a Gordian Knot-like tangle of debt claims that will enable Marriott to reopen the hotel this fall. (CO)
- Wafra will acquire a minority stake in Colony Capital’s Digital Colony division, giving the entity permanent capital to pursue strategic investments across the digital infrastructure ecosystem, including cell towers, data centers, fiber, and small cells. Wafra’s investment is expected to exceed $400 million. (PressRelease)
- An Astoria Key Food has told the state it will lay off all 151 of its employees and shut its doors at at 22-15 31st Street this October. Landlord Jenel Management reportedly plans to raze the two-story building and replace it with a three-story structure that features Target on the upper two floors, leaving room for a supermarket below. (TRD)