While the number of delinquent loans are among the highest for CRE asset classes, many have been salvaged by forbearance and loan modifications. This has been a prime reason why so little distress has entered the market. But in some cases, these lender overtures are merely kicking the can down the road. DBRS Morningstar recently described the risks remaining with a New York regional mall loan returned to the master servicer after a loan modification was approved.
The 484,556-square feet portion of the regional mall that secures the loan is about 25 miles south of the U.S.-Canada border in Plattsburgh, NY. An affiliate of The Pyramid Cos., a privately held company that owns 15 regional malls totaling 17.8 million square feet in the Northeast US, is the loan's sponsor, according to DBRS Morningstar.
Like many mall operators, large shutdowns have stymied Pyramid. Significant revenue declines have weighed the company down amid the pandemic as a large part of its portfolio shuttered for the spring months of 202, according to DBRS Morningstar.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
