"The desolate and distressed San Francisco Centre, once a Westfield mall before its owners handed back the keys, stands in stark contrast to Unibail-Rodamco-Westfield's outdoor shopping center in Century City. The San Francisco mall, owned by Unibail-Rodamco-Westfield and Brookfield Properties until the two entities stopped making payments on a $558 million note and then bailed, is now worth less than $200 million."
"Special servicer commentary said: Borrower has expressed interest to transfer title back to the Lender, per Morningstar Credit. The century-old Santa Monica Clock Tower was recently appraised at $27.4 million compared to $49 million at loan issuance. That was after the $26.7 million commercial mortgage-backed securities loan connected to the offices went to special servicing and missed its maturity date."
Several major commercial properties have seen dramatic value declines and occupancy drops, prompting loan distress and special servicing. The San Francisco Centre is now worth under $200 million after owners stopped paying on a $558 million note; the 1.5 million-square-foot retail center is only seven percent occupied and the lender seeks immediate recovery. Westfield Century City appraised at $2 billion and is about 96 percent occupied with a $925 million CMBS refinancing. The Santa Monica Clock Tower was appraised at $27.4 million versus $49 million at loan issuance; occupancy fell to 43 percent and the $26.7 million loan entered special servicing with the borrower expressing interest in transferring title back to the lender.
Read at therealdeal.com
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