![]() And in July, Brookfield ended plans to redevelop a former mall in Burlington, Vermont, claiming it didn’t fit with its strategy. ![]() Brookfield recently handed over the title to lender New York Life Insurance, though in 2019 it scored rezoning approvals to bring hundreds of residential units to the property. It had made strides with North Point Mall. Several of Brookfield’s problem malls were from the Rouse acquisition, including Bayshore Mall in California, Valley Hills Mall in North Carolina and Pierre Bossier Mall in Louisiana.īrookfield’s grand plan to convert many of its malls into residential or mixed-use properties is still a work in progress but some of those efforts have not worked out. ![]() Rouse had been spun off from GGP in 2012. Two years earlier, a Brookfield Asset Management fund paid $2.8 billion for Rouse Properties, which owned about 30 Class B malls. ![]() When Brookfield acquired GGP’s 125 Class A malls in 2018, it already owned about a third of the Chicago-based company. A new report from Green Street estimated the value of Class A luxury malls has fallen about 45 percent since 2016 levels. Crew, Brooks Brothers and others declared bankruptcy. Those pressures - namely from e-commerce competition - only intensified over the last year as governments forced mall closures or restrictions and retail tenants like J. Brookfield Asset Management pitched the move as a way to buy the shares at a discount to their true value.īrookfield Property Partners declined to comment for this article but like most mall owners, it faced mounting challenges even before the pandemic. Just weeks ago, Brookfield Asset Management announced its plan to take private Brookfield Property Partners - its real estate arm - in a deal worth roughly $6 billion at the time. While the total number of at-risk malls is just a fraction of Brookfield’s retail holdings - 170 properties and 148 million square feet - the loan troubles come at a critical time. They are: Fox River Mall in Wisconsin, Glenbrook Square Mall in Indiana and Greenwood Mall in Kentucky. The Real Deal has not previously reported on the loan troubles tied to North Point, Crossroads, Bayshore, Valley Hills and Pierre Bossier malls.Īt least three other malls that Brookfield partially controls have been in default for months, according to the data. Pierre Bossier Mall | Bossier City, Louisiana | 265K sf * The square footage corresponds to the portion of each mall Brookfield owns, except North Point, which notes the entire size of the mall. Valley Hills Mall | Hickory, North Carolina | 325K sf 9. Florence Mall | Florence, Kentucky | 384K sf 8. Park Place | Tucson, Arizona | 478K sf 7. Bayshore Mall | Eureka, California | 516K sf 6. RiverTown Crossings | Grandville, Michigan | 636K sf 5. Matthews | Louisville, Kentucky | 670K sf 4. North Point Mall | Alpharetta, Georgia | 1.3M sf 2. The Brookfield malls that either have or are at risk of being turned over to lenders are scattered throughout the country, with several in the South and Midwest. For its North Point Mall in Georgia - the largest of the 10 on the list - the lender confirmed Brookfield already handed over the title. Brookfield has already handed the keys to its lender on the Florence Mall in Kentucky, according to Trepp. In other cases, servicers noted Brookfield was not likely to continue funding its loan on the property. Some of the malls could be handed back to lenders via foreclosure or a deed-in-lieu - when a borrower gives up the property to avoid foreclosure. Loan servicer commentary found most of the mortgage payments are over 90 days delinquent. Those properties are backed by a combined $1.2 billion in loans - nearly all them securitized - and comprise 5.6 million square feet of real estate. Now, with brick-and-mortar stores struggling and debts mounting, 10 Brookfield malls are at risk of being handed over to their lenders, according to a Real Deal analysis of mortgage data from Trepp and rating agency Fitch, and media reports.
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