The Dike Is Starting To Break. It Will Get Much Worse Before It Gets Better!!

A Big Mortgage Crisis Looms

Written by FINSUM

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(New York)

An event happened this week in the commercial real estate space that feels as though it might be seen as a canary in the coal mine for the forthcoming real estate crisis. The largest (and probably most famous) mall in the US—Mall of America—just fell behind on its $1.4 bn mortgage payments. The owner of the mall, which features over 500 stores and a theme park, missed its mortgage payments in both April and May, reports the Financial Times via Wells Fargo documentation. The owner, called TripleFive Group, has reported to Wells Fargo that it has suffered hardship because of COVID. Presently, nationwide about 1 in 5 loans bundled in CMBS are now on “watch lists”.