Home Law income The operator of three Dallas-Fort Worth malls files for bankruptcy

The operator of three Dallas-Fort Worth malls files for bankruptcy

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The owner and operator of the Washington Prime Group shopping center filed for Chapter 11 bankruptcy after COVID-19 left him with empty stores, unpaid rents and a drop in buyer traffic.

Washington Prime operates 101 malls and shopping centers, including 13 in Texas. Locally, the company owns Irving Mall, The Shops at North East Mall in Hurst and Richardson Square.

The Columbus, Ohio-based real estate investment trust, which controls 53 million square feet of retail space, was split from Simon Property Group in 2014 and included many of the oldest malls and shopping centers Simon’s big box.

Bankruptcy seemed likely after Washington Prime missed a semi-annual interest payment of $ 23.2 million in February and lenders entered into a forbearance agreement that was repeatedly extended, including twice this month. this.

Washington Prime filed a lawsuit Sunday night in U.S. bankruptcy court in Houston and listed approximately $ 4 billion in assets and nearly $ 3.5 billion in debt. Under Chapter 11, the company will be able to restructure and continue to operate its shopping centers.

Other Washington Prime properties in Texas are Longview Mall, Fairfield Town Center in Houston, Sunland Park Mall in El Paso, Rolling Oaks Mall in San Antonio, Palm Crossing in McAllen, Wolf Ranch in Georgetown and four in Austin and surrounding areas: The Shops at Arbor Promenade, Arboretum, Gateway and Lakeline Plaza at Cedar Park.

As traffic in shopping centers picks up since their temporary closure during the health crisis, the pandemic has accelerated the decline of weaker shopping centers. In many cases, mall appraisals have fallen below the value of loans secured by properties, making refinancing nearly impossible. Instead, lenders are advised to extend due dates.

Twitter: @MariaHalkias

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