iamjacobm wrote: Mon Oct 17, 2022 6:24 pm
Apparently the loan on the mall matured 10/1 and they didn't pay their balloon payment. Not sure what is all going to happen, but an interesting development.
Sorry, could you explain what that means?
Unlike your standard mortgage where they are generally a 30 year term fully amortized, very few commercial borrowers take out loans like that. It traps your equity.
There are all kinds of unique commercial loan terms, but a 10/30 is probably the standard. 30 meaning the loan amortizes like a mortgage, but the term is 10 years. So you make payments like you have a 30 year loan, but after year 10 you owe all the outstanding loan balance aka “balloon”. Generally you go refi at this time if the value of your property has increased and the market isn’t insane you make a good chunk of money at refi time to use on paying for improvements at the property, paying yourself or equity partners, invest in other property. Whatever.
Idk the details here, just caught it mentioned on a podcast I listen to about the RE debt market. It doesn’t necessarily mean the mall is on the verge of collapse. Just might mean that putting together a $100+ million loan on a mall in Omaha is probably insanely difficult right now. I would imagine they are able to extend the term to let the parties figure it out. I doubt the lender wants to take the property back and have to deal with it.
Not surprising that the Mall's revenue is trending downward. Was in VM in September and maybe 20 customers were there. A lot of the other stores are not exactly destination shops and with the crowds of random teens acting out and being generally problematic, it's easy to see why people just go to VM or the Container Store and then split. I think that big malls require people to walk around and browse. Not really going to do that when you have to wade through crowds of people engaged in Brownian motion.
bigredmed1 wrote: Thu Oct 20, 2022 8:27 am
Not surprising that the Mall's revenue is trending downward. Was in VM in September and maybe 20 customers were there. A lot of the other stores are not exactly destination shops and with the crowds of random teens acting out and being generally problematic, it's easy to see why people just go to VM or the Container Store and then split. I think that big malls require people to walk around and browse. Not really going to do that when you have to wade through crowds of people engaged in Brownian motion.
Also literally everything you can buy in a mall can be delivered to your door (and returned, if needed) for free now.
There jsut aren't that many people that need |expletive| from Hot Topix RIGHT NOW.
bigredmed1 wrote: Thu Oct 20, 2022 8:27 am
Not surprising that the Mall's revenue is trending downward. Was in VM in September and maybe 20 customers were there. A lot of the other stores are not exactly destination shops and with the crowds of random teens acting out and being generally problematic, it's easy to see why people just go to VM or the Container Store and then split. I think that big malls require people to walk around and browse. Not really going to do that when you have to wade through crowds of people engaged in Brownian motion.
Also literally everything you can buy in a mall can be delivered to your door (and returned, if needed) for free now.
There jsut aren't that many people that need |expletive| from Hot Topix RIGHT NOW.
On the other hand, with Halloween approaching I'd imagine this is one of Hot Topic's busiest times of year. But yes, you can probably get that |expletive| delivered too for a fee.
