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Appraisal slashes value of Arbor Place Mall by nearly half
The 1.1 million square foot Douglasville, Georgia mall is still in special servicing with an $81.9 million loan balance after CBL defaulted in May.
Bisnow reports that a new appraisal has cut nearly half the value of Arbor Place Mall in Douglasville, Georgia, even as the center remains largely occupied. The nonanchor portion was appraised at $93.7 million, a 46% haircut from when its loan was originated in 2012, according to Morningstar Credit Analytics.
The 1.1 million square foot mall is anchored by Dillard’s, Belk, Macy’s, and JCPenney, and CBL & Associates owns about 546,000 square feet of the property that is mortgaged. CBL took out a $122 million mortgage in 2012 with JPMorgan Chase, which later sold the debt into a commercial mortgage backed security.
The loan originally matured in May 2022 and moved to special servicing, when CBL later secured a four year extension. CBL defaulted again in May on the debt, which now has an $81.9 million outstanding balance and is once again in special servicing, with CWCapital installed as special servicer in March.
CBL said it intends to cooperate with foreclosure or conveyance of the property in satisfaction of the debt in an Aug. 7 quarterly earnings report, though the article notes there is no indication a foreclosure has been advertised. Bisnow adds that occupancy has recovered from pandemic lows, with the mall at 94% occupied in the first quarter after falling to 81% in 2022.