The owner of the high-end Tysons Galleria mall said it plans to avoid defaulting on $282 million in debt slated to mature Tuesday as the owners of retail centers across the nation continue to struggle amid the coronavirus pandemic.
Representatives for Brookfield Properties indicated they will not pay off the debt when it expires Sept. 1, according to multiple rating agencies tracking the commercial mortgage-backed security. The CMBS debt was transferred to a special servicer for imminent default, loan servicing notes on the debt stated.
A Brookfield spokeswoman said only that “we do not expect a default at our Tysons Galleria” in response to a request for comment by the Washington Business Journal.
It’s just the latest sign of challenge facing the owners of retail properties during the Covid-19 pandemic, which has exacerbated conditions many already faced with the rise of e-commerce.
