Mall lenders would rather suffer huge losses than take over struggling properties
By Esther Fung | The Wall Street Journal
Landlords who owe millions of dollars on struggling shopping malls are finding they have serious bargaining power.
At a time when retailers are closing thousands of stores across the U.S., some lenders are deciding to renegotiate loans backing malls—and suffer guaranteed losses—rather than run the risk of being stuck owning or operating the malls themselves.
Shopping mall owner Washington Prime Group WPG -3.93% last June defaulted on an $87.3 million loan backing Mesa Mall in Grand Junction, Colo., and turned the keys over to creditors.
