Mall of America Saved from Foreclosure, but For How Long?
The Mall of America, in Bloomington, Minnesota, is several payments late on their mortgage, but is likely out of foreclosure danger...at least for now. Just a few weeks ago the news was filled with stories of the mall opening, then Nickelodeon Universe Opening.
The e-mail that my kids have been waiting for showed up in my inbox this morning. Nickelodeon Universe at the Mall of America in Minnesota announced their plan to open back up. Before you load up the car, keep reading because there are some pretty big changes in place to help keep you and everyone safe. (Keep reading about the MOA here...)
But now, this. According to The Business Journal,
Mall of America owner Triple Five Group continues to be behind on its mortgage payments, but has entered into a forbearance agreement with the special servicer on its loan that could help the megamall avoid foreclosure, even as it wrestles with lower customer traffic during the Covid-19 pandemic.
The Star Tribune is saying the value of the MOA has dipped. Worth $2.3 billion in 2014, it's now down to $1.9 billion. But, it's not just the money the company owes on their Mall of America property, though. Again, from The Business Journal,
Another complication: Triple Five has put up a 49% stake in the Mall of America as collateral on another giant mall: the American Dream retail development in New Jersey, which is also facing challenges in the Covid-19 era.
Does this mean that Covid-19 could shut down the Mall of America, too? Maybe yes, maybe no. Everyone from the Mall owners to the folks holding the $1.4 billion mortgage, have an interest in seeing the MOA stay open. A "too big to fail" kind of thing.
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