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Owner of Independence Center can’t repay its loan on the mall property

The owner of the Independence Center, at Missouri 291 and Interstate 70, has transferred a $200 million loan balance to a special servicer, which typically services loans that are at risk for default, according to research by Trepp.
The owner of the Independence Center, at Missouri 291 and Interstate 70, has transferred a $200 million loan balance to a special servicer, which typically services loans that are at risk for default, according to research by Trepp. The Kansas City Star

The owner of the Independence Center mall has signaled it can’t repay a $200 million loan balance when the note matures on July 10.

Simon Property Group, a publicly traded real estate investment trust based in Indianapolis that has owned Independence Center since 1994, has indicated it won’t be able to pay the loan given the upcoming maturity and the net operating income that the mall property generates. The $200 million balance of the loan has been transferred to a special servicer, which typically services loans that are at risk for default, according to research by Trepp, a firm that tracks commercial mortgage-backed securities.

Independence Center, at the northeast corner of Interstate 70 and Missouri 291, opened in 1974. The enclosed mall’s anchor tenants include Sears, Macy’s, Dick’s Sporting Goods and Dillard’s.

Representatives from Simon Property Group did not respond to two emails and two phone calls Monday seeking comment. Simon Property Group had told the special servicer that mall tenants had not been able to increase sales because of economic challenges, according to a special servicer note contained in the Trepp report. Also, increased retail near Independence Center has added to economic pressure facing the mall.

Steve Vockrodt: 816-234-4277, @st_vockrodt

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