Brookfield Properties is to extend a $ 136.9 million commercial mortgage-backed securities (CMBS) loan secured by the 650,000 square feet Fox River Mall in Appleton, Wis., according to the Special Services Watchlist commentary reviewed by Trepp.
It’s unclear whether the extension is a sign that lenders continue to show compassion as the COVID-19 pandemic rages on, or whether that compassion extends only to major sponsors.
Discussions between the borrower, the special service and the Control Class Representative (CCR) over a modification and extension began in late October or November 2020, according to the special service’s memos. These discussions focused on converting payments on both the $ 136.9 million A Note and the $ 21.1 million B Note to interest only in the future, as well as an extension of three years from the maturity of the debt until June 1, 2024; any missed payments on the A note would also be updated before the loan modification.
The A note, which was transferred to the special service on September 4, 2020, had only been paid until July 2020, according to the special service notes.
Wells fargo issued a total loan of approximately $ 186.6 million in June 2011 to refinance the mall, and Note A’s starting balance of $ 161.7 million was securitized two months later in the then 1, $ 48 billion led by Wells Fargo WFRBS 2011-C4 CMBS transaction driven. The current A-Note balance is the largest loan remaining in the conduit agreement, representing just over 14.6% of its outstanding balance of approximately $ 936.5 billion. Note B has not been securitized.
At the time of origination and securitization, the property was owned by the owner of the Chicago Mall General growth properties, a company that once held the title of the second largest mall owner in the United States, before Brookfield Real Estate Partners bought it for just under $ 9.3 billion in cash in the spring of 2018.
The mall closed due to COVID-19 but reopened on May 20, 2020, with restrictions, sure. Changing rooms are off-limits to guests and additional masks are being distributed, according to reports from May 2020 by the Appleton Post-Crescent. Brookfield, following the safety instructions released by the state of Wisconsin and the federal government, implemented social distancing measures, hand disinfection stations, non-contact interaction methods and regular cleaning. The reopening was made possible after the governor Tony evers‘The Safer at Home order was largely canceled by the Supreme Court of Wisconsin May 13.
Located at 4301 West Wisconsin Avenue in Appleton, a town just southwest of Green Bay, the mall was built in 1984 and renovated two decades later. Sporting Goods Store Scheels all sports is currently the largest occupant of the mall, located on more than 122,000 square feet, or about 18.8% of assets, according to Trepp tenant information. Other large tenants include a Bob’s Discount Furniture store, a DSW shoe warehouse, a H&M, and one Global Market Cost Plus.
A Brookfield representative did not respond to an email request prior to publication.