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Mall at the Source to be sold at auction
The Mall at the Source is slated to be sold at a foreclosure auction on Aug. 28, according to PropertyShark.
The long-troubled retail center is burdened with a $124 million mortgage, according to a report by Trepp, which tracks commercial mortgages. An appraisal last year valued the property at $90 million “as is,” Trepp reported. PropertyShark reported the outstanding lien is $141.9 million.
The mall's prime location on Old Country Road in Westbury means it has "a lot of potential," said Jeremy Isaacs, a broker with Ripco Real Estate. It is located near the Roosevelt Field mall, among other retail magnets. However, its design is so obsolete that it may need to be knocked down, and it is likely to be 75 percent vacant by next month, Isaacs said.
The mall was hit hard by the closing of anchor tenant Fortunoff in 2009, as well as by the departures of other tenants, Isaacs said. Nordstrom Rack and Saks Fifth Avenue Off 5th are due to move from the Mall at the Source to the nearby Gallery at Westbury Plaza, which debuts this month.
“It’s a very good piece of real estate,” Isaacs said, but “its initial design was for big box tenants, and today that requirement from the big boxes is to be more in strip centers than interior malls.”
The Mall at the Source’s loan was transferred to a special servicer in 2009 due to “imminent default,” according to commentary in the Trepp report. Special servicers work with commercial loans in default or at risk of default.
W & S Associates LP of Indianapolis, listed by PropertyShark as the mall’s owner, could not be reached for comment this morning. The New York state Department of State lists the company’s address as Simon Property Group LP in Indianapolis. A spokesman for Simon Property Group, which manages the mall, said Simon no longer owns the center, but he declined to comment further.
Herrick, Feinstein LLP, the law firm representing W & S, did not immediately respond to calls for comment. The loan servicer, LNR Properties of Miami, did not return a call for comment.