Investors who short sold the dead commercial real estate index, which has a lot of retail sales, got paid a lot.
According to Bloomberg News, the loan at Prizm Outlets Mall in suburban Las Vegas recorded a 120% loss after the property was auctioned for just over $ 400,000. The buyer has not been revealed, but New York-based Cohan Retail Investment Group is currently listing properties on its website.
The total loss realized on the $ 62.2 million loan, including fees and repayments to the senior manager, was $ 74 million. According to Bank of America, this is the largest loss of CMBS loans since 2008.
The Prizm sale was the first real estate auction linked to CMBX 6, a credit derivative indicator heavily exposed to shopping malls and shopping centers. According to MP Securitized Credit Partners, 31 of the 39 shopping centers are impaired.
Carl Icahn is another investor who shorts the index. Cahn Preached It was only a short time ago that it became clear that a pandemic would have a devastating impact on retailers and in-store real estate.
“We believe these mortgages will follow the same dire fate as the mortgage-backed securities received in the 2008 disaster,” Ikarn told Bloomberg this week.
Icahn and other investors betting on these debts have already cashed in some of their assets. Their bet Some of the country’s largest mall investors, such as Simon Property Group and Starwood Capital Group, are defaulting on a loan.[Bloomberg] – – Dennis lynch
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