The $142.3M Westside Pavilion loan was put on the servicer watchlist earlier this month. TreppWire reports. “[The] property performance has been trending downward.” The loan was originally underwritten with a debt-service coverage ratio of 1.40. The ratio increased to 1.55 two years ago, then fell to 1.28 last year. At the mid-point of 2017, it has fallen precipitously to 0.91. The primary cause has been the mall’s occupancy decline from 96% to 87% over the past 3 years. With the planned move of Nordstrom’s to Century City, things may get worse in the near future.
Source: Westside Pavilion Loan Lands On Servicer Watchlist – Retail