The mall’s owners entered into an agreement with lenders to avoid foreclosure. Now what?

A key feature of how CMBS loans are structured is proving troublesome during the COVID-19 recession.

The company plans to continue exploring outside bids, but its advisers will now work with lenders to negotiate a debt-for-equity swap.

Short sellers are starting to build up wagers against CMBX 9, which has outsized exposure to hotel debt.

Led by loans backed by hotel and retail properties, $54.3 billion in CMBS debt has been transferred to workout specialist since March.

The REIT plans to transfer the branding and management of the 103 hotels to Sonesta International Hotels Corp. by December.

Brookfield, Starwood, Colony Capital and Blackstone have been among the investors skipping payments on CMBS debt.

The 5.6-million-sq.-ft. mega-mall was reappraised at $1.94 billion as its owners missed three monthly debt payments.

For the very brave, however, this may be an opportunity to take advantage of “desperation” in the market.

In the case of the Times Square Edition, the pandemic exacerbated existing problems, including a market glut and troubles leasing its retail component.