Southland Mall’s Troubled $65M CMBS Loan For Sale

Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL's Tom Hall and Danny Finkle (Google Maps, JLL)

Southland Mall, 20505 South Dixie Highway in Cutler Bay with JLL’s Tom Hall and Danny Finkle (Google Maps, JLL)

JLL is marketing the $65 million commercial mortgage-backed securities loan that the former owner of Southland Mall in Cutler Bay defaulted on earlier this year.

The CMBS loan is tied to the 990,000-square-foot indoor mall at 20505 South Dixie Highway. The mall’s former owner, Investcorp, defaulted on the loan in April and handed the keys over to its CMBS lenders this summer. The mall is currently in foreclosure and a receiver was appointed by a Miami-Dade Circuit Court judge.

The loan is structured with a two-year term with three one-year extension options, according to a press release. The JLL Capital Markets team representing the seller includes Tom Hall and Danny Finkle.

“We predict a significant uptick in transaction volume in the first half of next year,” Hall told The Real Deal

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CMBS Foreclosures Start Rising As Hotel Defaults Break 50% In Some Cities

The market for commercial mortgage-backed securities, particularly hotels and retail, continues to worsen with no sign of an imminent turnaround.

The September edition of CMBS analysis firm Trepp’s monthly report found that 26% of hotel-backed CMBS loans are in special servicing, while the same is true for 18.3% of CMBS loans tied to commercial retail properties. Both sectors’ special servicing rates are the highest on record, while industrial, office and multifamily all have below 3% of their CMBS loans in special servicing.

Luxury hotels in major cities seem to be the hardest-hit subsection of the hospitality industry because they are more dependent on business travel and large events that remain all but nonexistent across the country.

Hotels in Houston, which has also been hurt by the oil industry’s struggles, hit a 69% delinquency rate in September, according to Trepp data obtained by Commercial Mortgage Alert. Just over 50% of Chicago’s

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