Owner Of Troubled Bangor Mall At Risk Of Defaulting
BANGOR, Maine - Industry analysts say the primary owner of the Bangor Mall in Maine is at risk of defaulting on an $80 million loan that uses the mall as collateral.
The Bangor Daily News reports that Simon Property Group of Indianapolis took out the loan in 2007 and has made only interest payments. The paper reports that lender Morgan Stanley Capital turned the loan over to a special servicer that handles troubled debts in late August.
The mall was appraised at $128 million when Simon took out the loan. But a recent Morningstar Credit Ratings report valued the mall at only $66.6 million and estimates that Simon has a 50 percent chance of defaulting.
The mall lost one of its four anchor tenants last spring. Leases for two other anchors face renewal soon.