BANGOR, Maine (NEWS CENTER) -- The Bangor Mall is at risk of defaulting on an $80-million loan, according to a recent Commercial Real Estate report -- putting the future of the shopping center up in the air.
Bangor's mall is currently owned by a venture led Simon Property Group. According to the report, the loan has transferred to special servicing because it's not expected to get refinanced by its October maturity. Fitch Rating's highlighted the loan's transfer to special servicer LNR Tuesday afternoon via email-alert. It's one of the largest of 65 remaining in the collateral pool for lender Morgan Stanley Capital I Inc.
The author of that report, Orest Mandzy, says he believes the Bangor Mall will remain open. "What it might mean is ultimately a new owner might takeover the property or the property might get re-capitalized," Mandzy said. "But that won't be visible to the average person going to the mall."
"That mall is one of few in that area," Mandzy said. "So it is very unlikely that it would close down."
However, only time will tell what the future of the mall will be.
NEWS CENTER spoke with Les Morris, the spokesperson for Simon Property Group about the status of the loan and future of the Bangor Mall. "I am not able to speak on this matter," Morris said. "It is against our policy."
NEWS CENTER will continue to update this story.
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