Westside Pavilion Loan Lands On Servicer Watchlist
Trouble is brewing for Westside Pavilion.
The $142.3M Westside Pavilion loan was put on the servicer watchlist earlier this month.
The loan makes up 13.67% of the collateral behind Wells Fargo Commercial Mortgage 2012-LC5, which is part of CMBX 6, TreppWire reports.
"[The] property performance has been trending downward," according to the watchlist commentary.
The loan on the more than 500K SF West LA mall was underwritten with a debt-service coverage ratio of 1.40. The ratio increased favorably over the years to 1.55 two years ago, then fell to 1.28 last year. Financials from the first half of the year show it has fallen to 0.91.
The mall's occupancy has shrunk from 96% to 87% over the past three years.
Two major problems for the mall include the sale of Macy's anchor store in January and Nordstrom's planned relocation, according to the report.
Nordstrom is scheduled to relocate to Westfield Century City in October.
That mall is undergoing a $950M reno that is expected to change the face of Century City.
Westside Pavilion's in-line space is 77% occupied, and the forecast is trending downward for Westfield Pavilion.
