Mall Of America On Verge Of Foreclosure As Megamall Misses Two Payments On Its $1.4 Billion Mortgage To Wells Fargo
The Mall of America has missed two months of payments on its $1.4 billion mortgage amid the coronavirus pandemic.
The Mall of America is the largest mall in the US. It is now delinquent on its monthly payments to Wells Fargo in April and May.
According to Wells Fargo foreclosure manuals, the mall is now in default.
CNBC is reporting that the mall operated by private developers Triple Five Group notified Wells Fargo that it is facing hardships.
However, it isn’t clear if they will try and seek relief from Wells Fargo.
The Mall of America which is valued at $2 Billion was forced to close on March 17th.
The Mall Of America Closed Due To COVID-19
The mall had planned to be closed until March 31st. However, the virus spread rapidly across the country.
They announced this week that retail stores can reopen on June 1st.
Dining and attractions will remain closed but food establishments may still operate through curbside and delivery.
Minnesota currently has more than 18,000 infections and over 800 deaths from COVID-19.
The state is one of 15 where COVID-19 infections are continuing to rise based on a 14-day trend, according to data compiled by the COVID-19 Exit Strategy.
The state is now allowing retail and malls, industrial, manufacturing, and office settings to reopen but gyms, personal care services, restaurants, and bars remain closed.
The Mall of America had asked state lawmakers for help with their financial difficulties. However, the city of Bloomington was against the idea.
Triple Five Group SVP Don Ghermezian said in an interview with CNBC last month that without federal assistance, “many malls will be headed into a default”.