Retail landlords nationwide have been telling tenants to obey their leases and pay their rents because the landlords themselves have to continue to maintain properties and pay their taxes and mortgages.
Apparently, there’s one that can’t be singing that refrain, and it’s a big one, one with 4.8 million sq. ft., 500 tenants, and 10 entertainment attractions. It’s the biggest mall in America with perhaps the biggest mortgage ($1.4 billion).
Operating on information from Trepp, a research firm that tracks commercial mortgage-backed securities, CNBCreported that Mall of America has let mortgage-holder Wells Fargo know of the “hardships” it faces and did not include any checks for April and May payments with the note.
While several big malls in Minnesota—among them Rosedale Center and The Galleria—opened on May 18 with the permission of Gov. Tim Walz, Mall of America is holding off until June 1. That’s when bars, restaurants, and entertainment businesses can open, and those are the main cogs in the machine of MOA’s owner, Triple Five Group.
Wells Fargo will no doubt be expecting a big check from Triple Five by June 8.