The owners of Fair Oaks Mall in Fairfax — the region’s second-largest shopping center — have missed an extended payoff deadline on distressed loans totaling about $239 million.
Michigan-based Taubman Centers Inc. and New York-based Mall Properties Inc., which does business as Olshan Properties, missed the loans’ first maturity date in May and received a six-month retroactive extension in August, taking the maturity date to Nov. 1.
The situation still hasn’t been resolved, disclosures to bondholders as of Nov. 15 show. The disclosures say the borrowers have requested a four-year extension on the loans and a conversion to interest-only payments, but as of a Nov. 15 update from loan servicers it remained unclear where that request stands. The notes to bondholders indicate negotiations and efforts to stabilize the property are underway, but they also note that foreclosure proceedings could be on the table as early as February.