Despite large loan maturing Scottsdale Fashion Square not in trouble, expert says (2)

Despite large loan maturing Scottsdale Fashion Square not in trouble, expert says (2)

 
Article Originally Posted By PhoenixBusinessJournal On November 29, 2021
 
 

Despite a loan worth $423 million coming due in 2023, Scottsdale Fashion Square is not in any financial danger, according to Robert Kline, managing director of debt and structured finance for the Southwest region for Colliers International.

“Scottsdale Fashion Square is the crème de la crème of malls and has the crème de la crème of owners,” Kline said. That reputation and ownership will make lenders more willing to work with properties, even with large outstanding loans, he said.

According to Macerich investor documents, the shopping mall owner and operator owns half of Scottsdale Fashion Square in a joint venture, and Macerich’s half of the loan, worth about $211.7 million, matures in April 2023.

According to CMBS data retrieved by the Business Journal, the total amount of the loan is about $423 million, but the loan terms have been modified. The mall was placed on a watchlist in late 2020 after the owners requested a Covid-related modification, but the mall was removed from the list in October after conditions were met for the modification.