******************** POSTING RULES & NOTES ******************** #1 YOU MUST clip all extraneous text when replying to a message. #2 This mail-list, like most, is publicly & permanently archived. #3 Subscribe and post under an alias if #2 is a concern. *****************************************************************
<https://info.ithaka.org/acton/ct/10452/s-22ba-2005/Bct/q-1d23/l-1d22:ab34/ct1_1/1?sid=TV2%3ALeVU5eJwF> Gurnee Mills is a sprawling, 1.93 million-square-foot outlet mall in Gurnee, Illinois, about 45 miles north of Chicago. In better times, it was a bustling shopper’s mecca. It underwent a $6 million renovation in 2018, and managed, in recent years, to replace its departed anchor stores, like TJ Maxx. But in 2019, citing a rise in mall vacancies and a decline in cash flow, the credit rating agency Fitch Ratings downgraded its outlook to “negative,” meaning the agency believed Gurnee Mills would be unlikely to repay its $260.3 million loan. That loan was packaged into a commercial mortgage-backed security, or CMBS. In the process, the loan itself was divided into pieces (called *tranches* <https://www.investopedia.com/ask/answers/what-tranche/>, French for “slices”) and sold to banks like Wells Fargo and Credit Suisse. Securities like that one are at the center of concerns about the roughly $1 trillion in debt tied to shopping malls. Gurnee Mills is an example of a nationwide phenomenon: many malls are at risk of defaulting on loans, which could pose a serious problem for the financial sector. https://daily.jstor.org/the-commercial-real-estate-markets-impending-crash/ <https://daily.jstor.org/the-commercial-real-estate-markets-impending-crash/?fbclid=IwAR2UiD42ei6L202QAHIm-3B0C-ETjLVvDgwflYr3_HeimCieWjv3DArB9Mw> _________________________________________________________ Full posting guidelines at: http://www.marxmail.org/sub.htm Set your options at: https://lists.csbs.utah.edu/options/marxism/archive%40mail-archive.com
