August 24, 2016
Collateral backing the $133 million Galleria at Pittsburgh Mills in Tarentum, PA loan dropped in value to $11 million. The loan is approximately 10% of collateral behind a Morgan Stanley CMBS deal. The loan has also been assigned an appraisal reduction of $124.9 million.
The 10-year-old mall at 590 Pittsburgh Mills Circle was valued at $190 million at the time of the loan’s origination in 2006. However, a drop in vacancy (most notably from Sears, which occupied close to 19% of the mall’s 1.1 million square feet), forced decreases in valuation over the years.
The most recent occupancy rate reported by monthly loan data from Trepp was 83%. Special servicer C-III Asset Management notes occupancy at 58%.
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