Five former Westfield Centro regional malls tied together in a loan in a CMBS trust have gone back to the loanholder, according to Wells Fargo Securities.
The Westfield Centro portfolio is secured by four regional malls and one anchored retail center totaling 2.4 million square feet of total mall space (of which 1.7 million square feet is loan collateral). The malls are in California, Colorado, Connecticut, Missouri and Ohio.
With an outstanding loan balance of $240 million, the five-property retail portfolio reported a 0.37x net cash flow debt service coverage ratio for the first nine months of 2015, down from 1.29x for full-year 2014, according to a CMBS brief from Well Fargo.
The most recent appraisal from July 2015 valued the portfolio at $133.9 million, down from $343 million in June 2006.
The malls back the largest loan held by the CMBS (J.P. Morgan Chase Commercial Mortgage Securities Corp. Series 2006-LDP7). LNR Partners Inc. acts as special servicer to the CMBS trust.
The loan originally transferred to special servicing in May 2014 for imminent default. The loan went into payment default in July2014.
The properties range in size from 327,000 square feet to 589,000 square feet and include the following
Westfield Eagle Rock is in Eagle Rock, CA, in Los Angeles County. The property was developed in 1973 and most recently renovated in 2001. The property consists of approximately 462,823 square feet of gross leaseable area (GLA). Anchors include Macy's, and Target. It posted 95% occupancy as of Sept. 30, 2015.
Westfield Enfield is in Enfield, CT, a suburban area outside of Hartford, CT. The property was developed in 1971 and most recently renovated in 2001. The property consists of approximately 559,108 square feet of GLA. Anchors include Sears and Target. . It posted 96% occupancy as of Sept. 30, 2015.
Midway Market Square (fka Westfield Midway) is in Elyria, OH, approximately 30 miles west of Cleveland adjacent to Interstate 90. The property was developed in 1966 and most recently renovated in 1990. The property consists of approximately 588,600 square feet of GLA. Anchors include JCPenney. It posted 62% occupancy as of Sept. 30, 2015.
Westfield West Park is in the town of Cape Girardeau, MO. The property was developed in 1981 and was expanded 2006. The property consists of approximately 426,662 square feet of GLA with Macy’s as a major anchor. It posted 70% occupancy as of Sept. 30, 2015.
Westfield Westland Town Center is a power cent in Lakewood, CO, part of the Denver MSA. The property was redeveloped in 1995 into its current configuration. Previous to the redevelopment the property was an indoor shopping mall from 1960 to 1993. The property consists of approximately 326,943 square feet of GLA and is anchored by a Lowe's. . It posted 98% occupancy as of Sept. 30, 2015.
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