Home / Business and Economy / Saugus Mall Loan Faces 'Impossible' Refinance Odds
Saugus Mall Loan Faces 'Impossible' Refinance Odds
16 Sep
Summary
- Square One Mall's $76M loan transferred to special servicing ahead of January maturity.
- Mall's net cash flow has declined annually since 2022.
- Simon Property Group previously relinquished other malls in the Boston area.
Simon Property Group is likely to relinquish ownership of the Square One Mall in Saugus, Massachusetts, as its $76 million CMBS loan has been transferred to special servicing. This move precedes the loan's January maturity, with analysis indicating a very low probability of refinancing. The mall's net cash flow has reportedly decreased annually since 2022.
The occupied portion of the mall, excluding anchor stores Sears and Macy's, stood at 74% occupancy as of March 31. This situation mirrors Simon's past actions during the pandemic era, where it returned several underperforming malls to their lenders. Notably, Simon has previously handed back Solomon Pond Mall in 2021 and sold Emerald Square Mall in 2022, both located in the Boston area.
Despite this development, the broader mall sector is experiencing a recovery, with mall values rising 13% over the past year. Simon continues to invest in other, better-performing Boston-area properties, such as redeveloping Copley Place and refinancing Northshore Mall.
