As an indication of how much retail real estate owners are struggling amid the pandemic, The Mall of America has reportedly skipped two payments on its mortgage of $1.4 billion. Research firm Trepp found that the Triple Five Group-operated shopping center missed the April and May payments for its mortgage, CNBC reported.
Trepp Senior Managing Director Manus Clancy told the outlet, “Next to hotel owners, retailers have been the hardest hit by the COVID-19 crisis. The percentage of delinquent retail loans has already surpassed the highest percentage reached during the financial crisis, and could be headed higher.”
In mid-March, the shopping center had shuttered due to the pandemic. While it is said to have told master servicer Wells Fargo of the “hardships” that it has encountered, it is reportedly unknown whether Triple Five will ask for loan forbearance. The mall, which is located in Bloomington, Minnesota, is set to reopen its retail shops at the beginning of June.
As previously reported, Gov. Tim Walz gave the go-ahead for the state’s retail locations to open as of May 11, assuming that they follow social distancing guidelines in their locations. The mall has indicated that its grand reopening will come two weeks later to provide the center with sufficient time to get ready for the increased cleaning and safety procedures.
“This will allow us to continue creating the safest environment possible for our team members, tenants and guests,” the mall noted in a statement. “It will also allow our diverse set of retail tenants the time needed to rehire, train staff and prepare their individual stores with necessary cleaning, sanitization and safety measure implementations.”
When the shopping center reopens, it will immediately resume its total capacity. Its unique amenities will stay shuttered for now, as thus far the state hasn’t given those attractions the go-ahead.