Monday, March 30, 2009

The Source Maturity Default

The Source matured 2 weeks ago with no payoff...

This particular mall has been hit with multiple bad exposures - Steve & Barry's, Circuit City (3rd largest tenant), and Fortunoff. I prefer to wait on the sidelines to see how this one plays out. I haven't looked at the financials to see how much those tenants contributed to the bottom line, but the mall was performing well last year, it has 10 years of appreciation built into it, and it might be a likely extension (again, not knowing the details).

It should be widely reported today - it's already here and here. This is the sort of news the CMBS sector needs to nip last week's rally in the bud - we can't have strong rally's, we're in a recession folks. Save your money for ammo and water.

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