Lender Takes Control of Miami-Area Mall with $ 2,600 Foreclosure Auction Credit Offer

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A Miami-area shopping center was seized by its lender, which won a foreclosure auction on Feb. 10 with a credit offer of $ 2,600, the South Florida Business Journal reported.

Wells Fargo Bank, administrator of the CMBS trust that issued the loan for the 977K SF Southland Mall in Cutler Bay, Fla., Filed a foreclosure action in June and won a judgment of $ 68.7 million in principal and interests. The auction was scheduled after the delivery of the court decision.

Investcorp’s $ 65 million commercial mortgage-backed securities lending, issued in 2014, received a special service in April 2020. As the coronavirus pandemic subsided and tenants shrank were debating, Investcorp decided to let go of the property, The Real Deal reported last year.

JC Penney at the Southland Mall in Cutler Bay, Florida, south of Miami.

The mall was owned by a subsidiary of Investcorp, a global company headquartered in Bahrain and $ 35 billion in assets under management. Investcorp reportedly bought the mall for $ 145 million in 2007.

The mall was largely destroyed by Hurricane Andrew in 1992 and rebuilt the following year. It now has nearly 100 tenants, including Mainstays Macy’s, JCPenney, TJ Maxx and Ross. One Kmart store closed in 2017 and one Sears closed in early 2020.

Jeremy Larkin, co-chair of NAI Miami business brokerage, which was not involved in the deal, told the Miami Herald that the mall has potential for redevelopment as the population of Cutler Bay has grown by 15% over the course of of the last decade.

In 2017, the Pittsburgh Mills Mall Galleria sold for $ 100 at auction in a similar credit supply situation. This mall then sold for $ 11.3 million in 2018.

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