Westbury’s Mall at The Source Is Scheduled for Auction

The Mall at The Source in Westbury, NY is scheduled for auction at the end of this month with a lien amount of almost $142 million, PropertyShark data indicates.

The mall defaulted on its $124 million mortgage in 2009 when several of its major tenants — Fortunoff, Circuit City, and Steve and Barry’s — closed their businesses. In May 2012 it saw its market value cut down to $51 million, almost half of the $90 million value it had in 2011, an article in LIBN points out. The mortgage is part of a pool of commercial mortgage loans, CMAT 1999-C1, whose rating was not affected by the transfer of the loan to special servicer LNR Partners in 2009.

The mall is definitely not the only commercial property in this situation. The Real Deal reports that the number of distressed loans linked to commercial mortgage-backed securities was on the rise at the beginning of 2012. Their numbers might grow as almost $30 billion worth of commercial property debt matures in 2012.

Roxana Baiceanu

Roxana Baiceanu

Roxana is an associate editor with Multi-Housing News and Commercial Property Executive. In the past, she also created content for PropertyShark and Point2Homes’ blog pages. She also has 5 years of experience as a marketing copywriter.