Michigan Real Estate News

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Crossroads Mall in Portage $77M Underwater, Deed-In-Lieu Possible

The Crossroads Mall in Portage, Michigan (near Kalamazoo) has recently been valued at $22.6M. Unfortunately, the mall has $100M in mortgage debt. The owner is currently in discussions with its lender about a deed-in-lieu. Although stories about the decline of the regional mall are all too common, the decline of Crossroads has been stunning, as it was valued at $152M as recently as 2013.

In addition to the square footage covered by the mortgage, the mall is home to a (vacant) Sears store, as well as JC Penney and Macy’s anchors.

As mentioned in a recent Weekly Brief, the mall is dead.

FHFA Extends Forbearance Plans

The Federal Housing Finance Agency lengthened forbearance extensions for Fannie Mae and Freddie Mac borrowers, allowing coverage for up to 18 months. Eligibility is limited to borrowers who are on a Covid-19 forbearance plan as of February 28, 2021. Some borrowers may now be in forbearance through August 2022. This may impact the timing of the impact of foreclosures discussed in last week’s Weekly Brief.

Bath & Body Works Shifting Stores To Off-Mall Locations

Retailer Bath & Body Works, which saw a surge in sales due to the COVID-19 pandemic, is planning to simultaneously open 49 off-mall locations, while closing 40 mall locations, in 2021. This will essentially keep the store count level but will shift stores away from malls to freestanding locations.