IBJNews

Simon’s Rushmore Mall loan sent to servicer, Fitch says

Back to TopCommentsE-mailPrintBookmark and Share

A loan on a South Dakota shopping center owned by Simon Property Group Inc., the biggest U.S. real estate investment trust, was sent to a special servicer because default is imminent, Fitch Ratings said.

The balance of the debt on the Rushmore Mall in Rapid City is $94 million, Fitch said Tuesday. The 830,000-square-foot center was built in 1978 and renovated in 1993, data compiled by Bloomberg show.

The mall plunged in value after the 2008 financial crisis. It had an appraised value of $117.5 million in 2006 as the commercial property market was peaking and was appraised at $45 million in September 2011, according to Bloomberg data. Sears Holdings Corp. and J.C. Penney Co. are among the property’s anchor tenants, according to Simon’s website.

But Penny, which occupies 89,000 square feet, has threatened to leave the mall unless it receives a new 104,000-square-foot space at the mall. Simon has denied that request.

Simon’s revenue has been rising as demand for space in regional malls climbs. Revenue jumped 14 percent in the third quarter from a year earlier, the Indianapolis-based company reported.

Les Morris, a Simon spokesman, didn’t immediately return a voice mail or e-mail seeking comment on the Fitch listing.

Special servicers negotiate with landlords on behalf of bond investors. The Rushmore Mall loan is packaged within Banc of America Commercial Mortgage Inc. 2006-3, a commercial mortgage-backed security.

Simon owns or has stakes in 331 properties in North America and Asia.

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT

facebook - twitter on Facebook & Twitter

Follow on TwitterFollow IBJ on Facebook:
Follow on TwitterFollow IBJ's Tweets on these topics:
 
Subscribe to IBJ
  1. I keep wondering why I keep hearing about this problem of corporations leaving America, and I never hear a reasonable proposal to lower corporate tax rates and raise personal rates on income from capital gains and dividends, especially for high earners. It is just too simple of a solution for Congress to embrace?

  2. Are you financially down and you need money to settle your dept,or you need money to start up a business or to invest on a huge business,we also offer Loans to individuals, Firms and cooperate bodies at low interest rate , loan terms determinant,Loan amount between the sum of $5,000.00 to $100,000,000.00. US Dollars And Euro. Loan for developing businesses a competitive edge/ business expansion. We Offer The Following Kinds Of Loans. Personal Loans (Secure and Unsecured) Business Loans (Secure and Unsecured) Consolidation Loan FIRST INFORMATIONS NEEDED ARE: BORROWER’S DATA’S INFORMATION,FILL AND RETURN FOR QUICK START UP PROCESS. Name:_________ Last Name:_________ Age:_________ Contact Address:_________ Country:_________ Amount Needed as Loan:_________ Loan Duration:_________ Phone Number__________ Monthly Income/Yearly Income:_________ Purpose for Loan:_________ Occupation:_________ How Soon is Loan Needed__________ Email via: albertbrownfirm@outlook.com

  3. is a disaster. SR37 already needs to be built to interstate standards between 465 and SR144. Southport Road is a mess each morning and evening.

  4. Bass Pro Shops would be good for the mall as well as a Giant Eagle Market District or a Jungle Jim's International Market Place grocery store like the one near Cincinnati Ohio.A Disney quest indoor theme park would be good.An Academy outdoor store would be good too.Indoor Circus shows and magic shows would be good as well. A casino with sports bar would be good.A Disney theater inside that shows movies and Broadway shows would work.Nashville Tennessee concert shops with indoor neon lights would be good.How about a theater that shows travel shows and theme parks. A train store would be good.How about a giant toy store with high tech video games.

  5. This development is in addition to Allpoints Midwest 5, Aitrtek, a recent FedEx and more in Plainfield. Greenwood and Brownsburg also have similar projects.

ADVERTISEMENT