Wednesday, August 15, 2012

That is going to leave a mark

Highland Mall sold for $1.03mm, and had liquidation expenses of $13.2mm resulting in a 119.99% loss to the trust on the loan that was originally a $71mm loan and was the largest loan in the JPMCC 2002-CIB4 deal.

Highland was a feisty little cat on her way down, but  this never looked like it was going to end well.

It is now home to Austin Community College, but was once a Rouse Mall and most recently a jv between GGP and Simon. Further, while dire, Realpoint only projected a 75% loss on the loan.

UPDATE: CrabsOfSteeel found this gem from (which seems like an otherwise dead site):


crabsofsteel said...

I don't know if this is going to come through as a clickable link, but it's a very funny graphic description:

This even outpaced the 107% loss severity on the Washington Mutual Building in GECMC 2005-C1

dmarks said...

Hello. FYI, I referred to an old blog post of yours in a comment to someone's post about how the number of government employees is pretty small:

crabsofsteel said...

Credit where credit is due; I got that from a sell-side strategist

crabsofsteel said...

Fitch mentions this mall: "Counter-intuitively, a mall with above-average sales today and located in a robust demographic market may be just as prone to deterioration in future years as new competition is attracted to the area. This is what occurred with the Highland Mall in Austin, TX, which recently liquidated at over 100% loss severity."