Chesapeake Square mall worth $20 million less than in 2015, new data shows

Chesapeake Square mall worth $20 million less than in 2015, new data shows
News by pilotonline.com
Posted on 17.02.2017
Chesapeake Square mall has fallen another almost $20 million in value, new data show.

As of this month the mall is worth $42.3 million, down from $61 million in October 2015, according to Trepp, a New York-based company that tracks the commercial real estate market.

That’s compared with a little more than $100 million in the mid-2000s, said Sean Barrie, a Trepp analyst.

Barrie said the fall is “not too surprising” given the mall’s recent history with an outstanding loan issued in 2004. Then-owner Simon Property Group borrowed about $73 million through J.P. Morgan Securities when the market for that type of commercial loan was surging.

The mall fell into foreclosure early last year and was bought by J.P. Morgan for $50 million after its newer, Ohio-based owner – WP Glimcher – was unable to pay off what it owed.

Management has struggled with the loss of anchor stores, including Macy’s and Sears, spaces that have yet to be filled.

Barrie said the recent drop is notable, but a “pretty common occurrence” for properties that remain real estate owned.





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