A $260 million foreclosure is coming for Pembroke Lakes Mall in Pembroke Pines.
Deutsche Bank filed a foreclosure lawsuit against the mall’s ownership last month, the South Florida Business Journal reported. The 748,800-square-foot complex at 11701 Pines Boulevard is owned by BGRE, formerly Brookfield Properties, which wasn’t named in the lawsuit.
The owner allegedly defaulted on the 2013-issued $260 million loan last year, failing to repay the financing by the March maturity date, the outlet said. The loan was transferred to special servicing, and the borrower now owes the full principal amount, plus fees and interest, according to the lawsuit.
The lender asked the court to appoint Carmen Spinoso of Spinoso Real Estate Group as the receiver.
Back in 2013, the mall had a $427 million appraisal value.That number has plummeted to $112 million as of April, according to the outlet. The 1992-built shopping center is 96 percent occupied, with its largest tenants being Macy’s and H&M. Dillard’s and JCPenny’s stores on the site are separately owned.
Refinancing could be difficult. Even though the mall generated $8.3 million in net operating income in the first half of the year compared with $3.9 million in required debt service payments, the loan’s 3.6 percent interest rate is much lower than today’s interest rates.
Brookfield is no stranger to debt woes. The Toronto-based global investment firm headed by Bruce Flatt has faced debt troubles at properties across the country, including Los Angeles, Washington, D.C., and New York.
Brookfield Asset Management manages over $1 trillion in assets across infrastructure, energy, private equity, real estate and credit, according to its website.
Pembroke Lakes Mall joins other distressed properties facing foreclosures in South Florida. Last month, Slate Property Group and The Carlyle Group filed a foreclosure lawsuit against MG Developer over Hialeah’s Metro Parc South multifamily development after the developer allegedly defaulted on $31.1 million in construction loans.
— Grace McClung
Read more
Brookfield’s $260M Pembroke Lakes Mall loan watchlisted, credit rating downgraded
How Brookfield made $2B in defaults disappear
Brookfield’s $260M CMBS loan in South Florida heads to special servicer
