Signature Associates

Fairlane Town Center expected to be sold next month

The Fairlane Town Center shopping mall in Dearborn is about to be sold, according to a New York City-based company that tracks commercial real estate loans .

Commercial mortgage-backed securities loan commentary provided Wednesday afternoon by New York City-based Trepp LLC says the sale of both Fairlane, located at 18900 Michigan Ave., as well as the Shops at Willow Bend in Plano, Texas, are expected to close next month to an unnamed buyer.

“If the sale does not close a back up buyer is ready to sign contract and move forward with proof of fund provided to receiver and lender,” the commentary reads.

Trepp, owned by Daily Mail and General Trust, analyzes data from loan prospectuses, servicers, special servicers and trustees and is widely considered an industry leader in CMBS data.

Mall management declined comment Wednesday afternoon. A message was also left with an executive for Syracuse, N.Y.-based Spinoso Real Estate Group LLC, which is managing and marketing the properties for lease.

It’s the latest twist for the mall, which was built in 1976 and has struggled financially the past few years. Its current ownership has fallen behind on its debts.

Both Fairlane, which is 1.4 million square feet, and the 600,000-square-foot Mall at Partridge Creek in Clinton Township are owned by Miami Beach, Fla.-based Starwood Capital Group, which paid what was then Taubman Centers Inc. (now Taubman Co. LLC) $1.4 billion for them and five other malls in 2014.

They have fallen into receivership and under new management in the past several months, failing under the weight of a pair of CMBS loans.

Fairlane, the Shops at Willow Bend and Stony Point Fashion Park in Richmond, Va., secure a $161 million CMBS loan on which Starwood defaulted, prompting a receivership and new management. The current balance is about $120.7 million, according to Trepp data. The malls were valued at $345.2 million when Starwood bought them; they are now worth $165.8 million as of earlier this month, Trepp says, up from just $89 million in August.

Partridge Creek, which also has been struggling for years, secures $725 million in CMBS debt along with three other malls: the Mall at Wellington Green in Wellington, Fla., MacArthur Center in Norfolk, Va. and Northlake Mall in Charlotte, N.C. Starwood owes $681.6 million on that loan.

In June, Crain’s reported that those four malls have a combined value of just $210.6 million, compared with $1.074 billion when they were bought in 2014.

Posted By: Crain’s Detroit Business on February 23, 2022.  For more information, please click here to read the source article.

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