CoStar News, a subscription information service about real estate, is reporting that the Park Plaza shopping center in Little Rock is one of the financial negatives in the portfolio of its owner, CBL and Associates, a shopping mall owner.
CBL has been working to modify its loans.
However, CoStar said CBL reported in its first-quarter report that it had discontinued discussions with lenders for modification of a loan secured by Park Plaza. From the CBL quarterly report:
CBL has discontinued discussions with lenders for a potential modification and extension of the loans secured by Park Plaza in Little Rock, AR ($77.6 million) and Hickory Point in Forsyth, IL ($27.5 million). CBL anticipates cooperating with the lenders in foreclosure proceedings. CBL is also working with the servicer for the loan secured by EastGate Mall in Cincinnati, OH ($31.9 million) to return the property to the lender.
CoStar, quoting a recent bondholder report, said the Park Plaza loan was in default.
The future? Who knows?
But there’s this related matter:
A write-down of the value of this property will have an impact on property tax revenues, particularly for public schools, the major recipient of property tax millage. This is a coming issue for real estate statewide, both through the dislocation of Internet shopping and now the coronavirus crisis.
And don’t forget the state’s improvident purchase of the Verizon building, which took more than $25 million worth of private property value off the tax rolls (and reduced the value of office property all over downtown.)