Investors who short-sold the dead index of commercial real estate, which has a lot of retail sales, were paid a lot.
According to Bloomberg News, the loan at Prizm Outlets Mall in the suburbs of Las Vegas realized a loss of 120% after the property was sold at auction for just over $ 400,000. The buyer has not been revealed, but the New York-based Cohan Retail Investment Group is currently listing properties on its website.
The total realized loss of the $ 62.2 million loan, including fees and repayments to the master servicer, was $ 74 million. According to Bank of America, this is the largest loss of CMBS loans since 2008.
The sale of Prizm was the first auction of real estate linked to CMBX 6, a credit derivative indicator with high exposure to malls and shopping centers. According to MP Securitized Credit Partners, 31 of the 39 malls are impaired.
Carl Icahn is another investor who is short selling the index.Icahn has Preached It’s been a short time since it became clear that a pandemic would have a devastating impact on retailers and real estate in stores.
“We believe these mortgages will follow the same dire fate that mortgage-backed securities received during the 2008 catastrophe,” Ikarn told Bloomberg this week.
Icahn and other investors betting on these debt have already cashed some of their assets. Their betSome of the country’s largest mall investors, such as Simon Property Group and Starwood Capital Group, default With a loan.
[Bloomberg] — — Dennis Lynch
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Mall Short-Sellers See Big Payout With Nevada Mall Auction - California News Times
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