The Broward Mall has a new owner after a lender acquired the commercial property for $43 million at a foreclosure auction.
An entity representing a US-Barclays commercial mortgage-backed securities trust, or CMBS trust, submitted the winning bid for the approximately 469,000 square foot mall at 8000 West Broward Boulevard in Plantation, court records show. . The only other bid, an $11.7 million bid by Oakland Park-based realtor Eric Nathanson, didn’t even come close to winning.
Built in 1979 on a 30-acre site, Broward Mall tenants include Hollister, Bath & Body Works, Buffalo Wild Wings and Victoria’s Secret.
In April, the CMBS trust won a foreclosure judgment for $101.4 million that included interest and attorneys’ fees.
The lender filed a lawsuit in June last year against the former owner, an entity managed by Amsterdam-based Unibail-Rodamco-Westfield, which acquired Westfield Group for around $25 billion in 2018. Westfield Group purchased Broward Mall and Westland Mall. in Hialeah for $400 million in 2007.
The owning entity defaulted on a $95 million loan issued in 2013 after it began to miss payments in May 2020, according to the complaint. Shortly after the lawsuit was filed, a receiver, El Segundo, Calif.-based Pacific Retail, took over management of the mall, including signing new tenants, according to court records. Subsequently, the mall changed its name to Westfield Broward’s Broward Mall.
Indoor malls were hit hard when government shutdowns forced many commercial properties to close in a bid to slow the spread of Covid-19 early in the pandemic. Among other affected South Florida malls, the Pembroke Lakes Mall in Pembroke Pines may struggle to repay a $260 million interest-only loan that is due in 2024, according to a June Morningstar report. The property is owned by New York-based General Growth Properties.
Poor performance in Pembroke Lakes has made it difficult for the mall to recover from pandemic disruptions, with occupancy falling 26% from full rental, Morningstar found.
In late April, a joint venture between North Palm Beach-based Electra America and Miami-based BH Group paid $100.3 million for Southland Mall, an 808,776-square-foot indoor mall in Cutler Bay, New York. Miami-Dade County. The partnership acquired the property from Wells Fargo Bank as a trustee of a JP Morgan Chase CMBS trust, which seized the property last year following a $68.7 million foreclosure judgment against the ‘old owner.