After falling months behind on the mortgage of the Mall of America during the onset of the COVID-19 crisis, the mall's owner has modified the terms of the $1.4 billion mortgage and is now current on the loan.
"The past 10 months proved incredibly challenging for everyone," Mall of America officials said in a statement Monday.
The Triple Five Group, the owner of the country's largest mall, had first started missing mortgage payments in April after the mall had to temporarily close due to the pandemic, according to the data firm Trepp, which tracks commercial mortgage-backed security loans. Following an initial grace period, the loan for the Mall of America has continued to be delinquent for months, but is now current as of December.
"Facing these unprecedented economic times, we immediately began to work with our lending partners to address the cash flow issues created by this loss of revenue," the mall said in its statements. "We are pleased to have been able to resolve the outstanding issues to the satisfaction of all parties involved, which included a modification of the loan terms."
The Mall of America was closed from mid March to June and — like shopping centers across the county — has suffered from a decline in foot traffic. More consumers have avoided visiting stores in person due to the risks of the coronavirus, many turning to online sales.
With the drop in sales at the mall, many tenants have had trouble making rent payments. Retail tenant collections at the Mall of America hit a low of 33% in April and May, according to Trepp.
The mall also has had to lay off more than 200 employees.
In May, Mall of America representatives said the mall's revenue had dropped 85% during the closure and that the mortgage had been submitted to a special servicer in hopes of reaching an agreement on changes to the terms of the loan.
