Commercial Real Estate Direct Staff Report
The Wyoming Valley Mall in the Scranton/Wilkes-Barre area of northeastern Pennsylvania has been appraised at a mere $31 million - $41.9 million less than the property owes against a $72.9 million CMBS loan.
The loan, securitized through GS Mortgage Securities Trust, 2014-GC18, has been with special servicer LNR Partners since July 2018, when it transferred to special servicing because it was expected to default. It hasn't defaulted yet, but Pennsylvania REIT, the collateral mall's owner, has made it clear it's given up on the property. It has listed it for sale through HFF, according to servicer notes compiled by Trepp LLC. The brokerage firm, which was recently acquired by JLL, has lined up a prospective buyer, but its offer is conditional on its modification and assumption of the CMBS debt.
If a sale isn't completed, PREIT said it expected to give the property to the CMBS trust in lieu of foreclosure.
The mall had an appraised value of $122 million in 2013, when the CMBS loan was written.
"The carrying value of this property is significantly less than the debt balance,"...
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