Business, Commercial Property, Foreclosures, Real Estate

Macon mall in foreclosure

From the Macon Telegraph:

Foreclosure action has begun against Macon Mall because of nonpayment on a $141.2 million loan, and a new management company has been approved by the court to take control of the 1.4 million-square-foot facility.

However, mall officials say the mall remains open and ready for customers.

“We don’t expect any operational interruptions to the mall,” said Brooke Houghton, spokeswoman for Chicago-based Jones Lang LaSalle Americas Inc., the court-appointed retail management company now managing Macon Mall. “We don’t think there will be any impact on the stores or the customers we serve. We are open and ready for business as usual.”

According to court documents, in June 2005 when New Jersey-based The Lightstone Group borrowed $141.2 million, Macon Mall LLC and Burlington Mall LLC in North Carolina were used as collateral for the loan, as well as rents and other income from the properties. The company purchased the two malls about the same time in 2005 for $166 million. A division of the company, The Prime Retail Group, took over management of Macon Mall.

Officials from The Lightstone Group did not return phone calls to confirm the loan was made for the purchase of the malls.

The loan currently is held by LaSalle Bank National Association as trustee for a trust that holds and owns a pool of loans including the one for Macon Mall. The trust filed the complaint.

Last month, the amount paid toward the loan was “$457,870.05 less than the amount necessary to fund all sums required to be paid,” for monthly operating expenses.

With the number of half-empty shopping centers and strip malls around the Atlanta area, many more commercial foreclosures can be expected. The real question is what affect that will have on the banks holding all of those commercial loans.

speak up

Add your comment below, or trackback from your own site.

Subscribe to these comments.

Be nice. Keep it clean. Stay on topic. No spam.

You can use these tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>

You must be logged in to post a comment.