DENTON, TEXAS — Feldman Mall Properties is currently negotiating with its lender for a forbearance on a loan that is partially secured by Denton’s Golden Triangle Mall. According to a release from the Great Neck, N.Y.-based shopping mall owner, the company has a $30 million line of credit, which is secured by some of its properties up to $24.6 million, and a guarantee by one of the company’s direct subsidiaries for any outstanding balance over that amount. The company states that its current outstanding balance is $27.8 million and it has also violated certain financial covenants. It is looking for a forbearance through the end of this year.
Last year, Feldman attempted to complete a deal with Inland American Real Estate Trust in which Feldman would repurchase 2 million shares of preferred stock from Inland and receive $9.25 million from the company in exchange for Inland receiving the titles to Golden Triangle Mall; Stratford Square Mall, located in Bloomingdale, Ill.; and Northgate Mall, located in Cincinnati. Inland terminated the agreement in January 2009.
At the time, Feldman state that it would need to find another way to raise the capital to retire $28.5 million in secured and unsecured, fixed and floating-rate, junior, subordinated notes and related trust preferred securities that were held for the three properties. The company further stated that it would have to raise significant additional capital or negotiated modifications to its existing debt in order to continue its ongoing operations.
Feldman Mall Properties did not wish to comment for the story.
Golden Triangle Mall is a 765,000-square-foot shopping center located at the intersection of Interstate 35E South and Loop 288. The mall contains more than 90 tenants and is anchored by Dillard’s, JC Penney, Macy’s and Sears. It was purchased by Feldman from Simon Properties Group for approximately $40 million in 2006.
— Coleman Wood