In this month’s edition of the Middle Market Junction Podcast, Andrew Lines, principal in CohnReznick valuation advisory services practice, specializing in real estate, speaks with Debtwire Middle Market’s Danielle Randall-Saba and Jon Berke and Sarika Gangar from Debtwire ABS about the state of class B&C malls and a look into the year ahead.
Top regional mall owners continue to trim underperforming malls from their portfolios, keeping them out of the red zone. However, this puts not-so-desirable malls in secondary and tertiary markets in uncertain territory.
Looking into 2017, Lines says he believes the conundrum is creating investment opportunities for hedge fund firms and financial sponsors. This is also creating a litigious environment between developers, landlords and retailers. Finally, Lines talks how some REITS are handing the keys back to lenders on underperforming malls, and where to expect property metrics to be as a result.