Department store chain Bon-Ton Stores is currently working through a plan to close about 42 of its stores, totaling $435.8 million in CMBS exposure. While those are already sobering numbers in this environment, industry analysts say that the picture could be much worse.
Companywide, Bon-Ton store properties are behind about $2 billion in
CMBS debt, says Steve Jellinek, a vice president of CMBS research at
Morningstar Credit Ratings. The company estimates that about $170.6
million in CMBS debt is tied to properties that will see a significant
drop in occupancy and net cash flow as a result of the store closures.
That number, however, might rise.. . . more