Rents have fallen at White Marsh Mall, Baltimore’s largest mall.
A unit of the Toronto investment giant that funded the demise of the San Diego Midway area height limit in the form of this month’s successful E measure is falling short of mortgage payments to pay off debt of several million dollars.
A subsidiary of Brookfield Asset Management is more than 60 days past due on $ 190 million commercial mortgage-backed securities guaranteed by the White Marsh Mall in Baltimore, Maryland, according to TheRealDeal.com.
Rents have fallen at the mall, Baltimore’s largest, following the coronavirus pandemic and the loss of Sears, an anchor tenant, the report says. Amazon now uses Sears parking for its delivery vehicles.
The loan, which is due to expire in May next year, was initiated by Wells Fargo in 2013. Brookfield, which has not made a payment on the debt since July, recently told investors and lenders not to worry about the pandemic. impact on commercial real estate activity.
“The crisis has reinforced some things that we already knew”, Andrea Balkan of Brookfield Asset Management told CommercialObserver.com last week.
“First, don’t panic – things are never as good as they look during a boom or as bad as they look during a downturn. Second, the sponsorship is as important as the quality of real estate.” And there are many reports that Brookfield still has a lot of money.
“The willingness of Brookfield Property Partners LP, Starwood Capital Group, Colony Capital Inc. and Blackstone Group Inc. to skip payments on commercial mortgage-backed securities backed by hotels and shopping centers illustrates how the fallout The economic effects of the coronavirus have devalued some real estate while creating new targets for these cash-laden investors, ”Bloomberg.com reported on August 24.
This fall, Brookfield Property Partners partnered with shopping center giant Simon Property Group in a deal to buy distressed assets from bankrupt JC Penney for $ 800 million in a bid to prevent big Penney stores to leave distressed shopping centers.
Whether Brookfield’s potentially lucrative San Diego sports arena deal – for which Republican Kevin Faulconer engineered the disappearance of the height limit – finds ultimate financial success or requires a bailout remains to be seen.
After spending over $ 400,000 On the Measure E campaign, Brookfield must now succeed in retaining the putative city franchise given to it by the lame mayor and ultimately offering a Covid-proof venue.
Changing business strategy, including funding a forest of condo towers in place of the sports arena, would likely force Brookfield to retain a new body of city lobbyists to gain city support from the new mayor, Democrat Todd. Gloria.