In a recent market note, Morningstar Credit Ratings lowered its value estimate for Westfield Sarasota Square, an 850,000-sq.-ft. mall in Sarasota, Fla., to $39.0 million, a 69.9 percent reduction from the $128.4 million it was worth at the time the original loan was issued in 2013.
The Chicago-based research company does not consider the current loan
to be at risk of default, but the lowered value estimate has pushed the
mortgage’s loan-to-value (LTV) ratio to 97.4 percent. If the property
continues to perform as it has recently, owner Westfield Corp. has a
smaller chance of securing takeout financing when the loan comes due.. . . more