Availability was close to 31 million sq. ft. in August 2022, according to real estate data fir CoStar. The last time there was close to this much empty space, office values plunged, causing billions in commercial real estate loans to sour.
The mall did not make an $8.8 million payment on municipal bonds that was due Monday.
The number of riders using the 59th Street stop has been declining for years now. Since 2014, it’s down more than 50 percent. The lockdowns, coupled with the unhurried return of office workers, only served to exacerbate that downturn.
The experiential component is starting to pay off for the American Dream megamall. But will it be enough to pay the mortgage?
The company would like to sell its U.S. malls at a 30 percent discount to their 2021 valuations. Analysts say that may be unrealistic.
About $3.4 billion in mortgages on Unibail-Rodamco-Westfield malls have been bundled into bonds and sold to investors.
The Beijing-based company plans to sell assets that won’t generate immediate revenue or haven’t been seized by creditors.
CRE capital markets performed well in 2021, with few signs of distress. But uncertainty remains.
