Suburban Detroit’s Lakeside Mall, home to midrange stores such as Sears, Bath & Body Works and Kay Jewelers, is one of hundreds of retail centers in the country being buffeted by the rise of e-commerce. When a $144 million loan on the property came due last month, owner General Growth Properties Inc. didn’t make a mortgage payment.
The default by the second-biggest U.S. mall owner might be a harbinger of trouble nationwide as
a wave of debt from the past decade’s borrowing binge comes due for shopping centers. About $47.5
billion of loans backed by retail properties are set to mature over the next 18 months, data from
Bank of America Merrill Lynch show. That’s coinciding with a tighter market for
commercial-mortgage-backed securities, where many such properties are financed.. . . more