Business & Tech
Gwinnett Place Mall Loan Reportedly Troubled
Special servicer handling financing for the struggling Duluth facility.
The $115 million loan for Gwinnett Place Mall reportedly has been transferred to a servicer that specializes in troubled loans, and the Duluth facility also faces a balloon payment next June.
The Atlanta Journal-Constitution reported that the mall, which has struggled in recent years amid demographic changes and competition from other shopping facilities, has an occupancy rate of 57 percent. Gwinnett County as a whole has a retail vacancy rate of 10.9 percent in the third quarter of 2011, according to CoStar Group, a commercial real estate information service.
Special servicing could be a step toward the property being returned to the lender, Merrill Lynch, according to the AJC. However, the servicer also could renegotiate terms of the loan.
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The mall, owned by Indiana-based Simon Property Group, has lost some shoppers and stores to the Mall of Georgia in Buford -- also a Simon facility.
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