The Shops at Willow Bend, a mall that added a new restaurant wing and non-commercial tenants including the Crayola Experience and Equinox Fitness Center, is 60 days behind on its loan repayment.
The Plano Mall has struggled since it opened in 2001 and was sold to Starwood Retail Partners in 2014, which turned around and spent $150 million trying to reinvent the experience.
Willow Bend’s outstanding balance of $65.7 million is among a group of malls that together secured a $161 million loan with an outstanding balance of $135.7 million.
“We are actively working to expand and restructure our financing at The Shops at Willow Bend,” Starwood said in an emailed statement. ”
The offending was in a report issued by Trepp LLC, a firm specializing in commercial mortgage-backed securities. The loan is marked as non-performing after it passed its extended two-year maturity date in November, said Trepp analyst Catherine Liu.
Starwood has indicated that it may pursue additional loan modifications or extensions and that the loan will likely be transferred to Midland, which is listed as the special agent for the mortgage collateral originally sold by Morgan Stanley, Liu said.
Other malls are Fairlane Town Center in Dearborn, Michigan, and Stony Point Fashion Park in Richmond, Virginia.
Plano Mall, built in 2001 just a year after the Stonebriar Center opened a few miles north of Frisco, is anchored by Dillard’s, Macy’s, Neiman Marcus and Crayola Experience.
Willow Bend was one of seven malls that Taubman, the mall’s original developer, sold in 2014 for $1.4 billion. Taubman said these malls weren’t as productive as the company’s other properties.
Taubman, the original developer, also poured millions into the property, tearing down a department store and adding furniture stores including Crate & Barrel and Restoration Hardware.
The story has been updated to correct the outstanding loan amount of $135.7 million, not $137.7 million as previously reported.
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