by Tyler Durden
Last week we wrote about the epic collapse of the Galleria Mall at Pittsburgh Mills which sold for $100 after once being appraised for $190 million shortly after being opened in 2005 (see “Pittsburgh Mall Once Worth $190 Million Sells For $100“). Unfortunately for mall owners, while the Pittsburgh Mills Galleria is an extreme example, crashing mall valuations are hardly an anomaly these days. In fact, just a few weeks ago Commercial Real Estate Direct wrote about the Foothills Mall in Tuscon, Arizona which was valued at $115mm in 2006 and backs a $75mm CMBS loan but recently appraised for just $18mm…or just a slight 75% loss for lenders.
Continue reading “Malls Owners Rush For The Exits As Mall-Backed CMBS Defaults Soar”
