Maul Market: Cincinnati Mall Sells on the Cheap
The Wall Street Journal reports: With the commercial real-estate market at a virtual standstill, there is much to be learned from the sale of one of the Cincinnati area's largest malls by retail giant Simon Property Group.
But be warned: It isn't a pretty picture. Not only was the price abysmally low, but the buyer, North Star Realty of suburban Atlanta, also had to agree to onerous personal-recourse provisions to obtain financing.
Just five malls valued at $5 million or more sold in the second half of last year in the U.S., down from 68 in the second half of 2007, according to Real Capital Analytics, a New York-based real-estate-research firm.
"The market for malls is dead," says Dan Fasulo, RCA's managing director of research. "These properties are very capital intensive and without the debt markets it's impossible to make them work."
View the full article on The Wall Street Journal: Maul Market: Cincinnati Mall Sells on the Cheap
Posted by: Matthew Stone