The owner of Plano’s Shops in Willow Bend, Chicago-based Starwood Retail, was unable to refinance a $ 135.7 million loan. The mall is therefore now under the control of the lender until someone comes to buy the property.
Starwood Retail had tried to refinance the loan before it matured on November 8 and received an extension. the loan was in default at the beginning of March, but Starwood said at the time that it was still working to expand or restructure the mall’s financing.
Trigild, a property management company with offices in Dallas and San Diego, now manages the property, tenants announced Monday. Trigild specializes in reorganizations and bankruptcies.
Trigild and Starwood did not respond to a request for comment. At some point, the mall – which is anchored by Neiman Marcus, Dillard’s, Macy’s and Crayola Experience – will have a new owner, but the coronavirus pandemic could slow the process down.
The 1.4 million square foot mall opened just before 9/11 and has struggled to grow ever since. Millions of dollars were reinvested in the 19-year-old mall by original developer, Michigan-based Taubman, and by Starwood, which added an outdoor food court.
Starwood bought Willow Bend from Taubman in 2014, and the loan was also secured by two other malls in Dearborn, Michigan, and Richmond, Virginia.
The loan outstanding by Starwood was part of a commercial mortgage-backed security issued by Morgan Stanley in 2015 and is now monitored by the special Midland Loan Services department.
Willow Bend Outstanding Balance was $ 65.7 million.