PINEVILLE, N.C. — Pineville’s Carolina Place Mall is facing an increasingly challenging financial picture. Brookfield Properties is in default on a $149 million loan tied to the mall after missing the mortgage payoff deadline, and the property’s value has fallen by more than half since it was refinanced in 2013.
Bank of Scotland’s loan for that nearly 1.2 million-square-foot property matured on June 1. It has since been transferred to a special servicer due to “imminent monetary default,” according to Oct. 15 filings tied to debt related to commercial mortgage-backed securities.
“We are working constructively with the CMBS servicer,” says Lindsay Kahn, director of public relations and marketing for Brookfield Properties.
CMBS loan data states the special servicer and borrower have engaged in discussions with respect to the modification of the loan. “However, no terms have been agreed upon. Discussions remain ongoing,” according to loan service reports.
A recent appraisal shows Carolina Place’s property value has plummeted.
Keep reading on CBJ’s website here.
(WATCH BELOW: Shoppers, employees urge action after panic at Carolina Place mall)
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