Skip to main content
Updated:
Original:

Mall of America missed mortgage payments as COVID-19 crisis takes toll

The mall sought relief via tax aid from the Minnesota Legislature earlier this month.

Mall of America (MOA) has missed recent mortgage payments. 

The megamall issued a statement Thursday following a report from the Financial Times, which cited documents it reviewed that were prepared by Wells Fargo, saying MOA is delinquent on its $1.4 billion mortgage after missing payments for the past two months. 

In a statement, MOA said the COVID-19 pandemic has stressed its revenues, dropping them by 85% while its larger expenses remain fixed. "It is a formula that cannot be sustained and has caused a significant interruption to our cashflow."

"That lost revenue has impacted our ability to stay current on our operating expenses. Unfortunately, Mall of America has not been able to qualify for any of the federal aid programs that are designed to get people back to work and protect businesses," the statement reads. 

"Facing significantly reduced revenues, and the realization that it will take many months to return to pre-COVID operating levels, we have not met our full mortgage payment obligations."

MOA said it has made partial mortgage payments while paying other expenses "simply to keep our building functioning." 

"Our hope has been to work with our lenders in order to resolve this situation in a way that allows our business to continue to move forward, while also meeting the goals of the lenders," the statement continues. 

“The loan is currently due for the April and May payments,” Bloomberg reported, citing a report filed by Wells Fargo, the trustee of the debt and the master servicer for the loan. “Borrower has notified master servicer of Covid-19 related hardships.”

A spokesperson with Wells Fargo confirmed to Bloomberg the mall is in delinquency, but wouldn't say anything more. 

Mall of America has been closed to in-person shoppers since mid-March due to the coronavirus pandemic and Gov. Tim Walz's stay-at-home order. It did start offering curbside service for a few stores earlier this month, and plans to reopen at partial capacity on June 1

Its financial troubles aren't much of a surprise, though. Not only are most businesses suffering due to the pandemic, but MOA sought some relief via tax aid from the Minnesota Legislature this month, but the city of Bloomington opposed it so the effort stalled in the state Capitol.

Meanwhile, CNBC reported in April that Triple Five Group, which owns MOA, is worried some tenants won't be able to pay rent, which would make it difficult to make its mortgage payments. 

This isn't just MOA, though. Many businesses are choosing to skip rent or mortgage payments during this time, with Financial Times, citing information from CMBS data provider Trepp, reporting delinquencies more than tripled in May from the previous month.

Next Up

Screen Shot 2020-08-14 at 6.45.53 PM

Teen arrested over fatal shooting of 5-year-old boy in Brooklyn Park

Police say the teen was filming a social media video while handling a gun.

Joe Biden

President Biden coming to Minnesota to promote Bipartisan Infrastructure Law

Tuesday's trip follows passage of the $1.2 trillion Bipartisan Infrastructure Deal.

Kirill Kaprizov

Kaprizov gets into the holiday spirit to rout Jets

Kirill Kaprizov's four points led the Wild to a 7-1 victory.

Kirk Cousins

Coller: Cure to Vikings' disrupted season lies in an explosive passing game

The Vikings go to San Francisco knowing that a win would be a huge boost to their playoff hopes.

unsplash football helmet ground

Judge upholds star QBs suspension for state championship game

Sam Backer, of Chatfield Senior High, won't be allowed to play in Friday's title game.

Screen Shot 2021-11-25 at 7.53.37 AM

Another 5,000 lbs. of goldfish removed from Carver County lakes

It all likely stemmed from people dumping their pets into local waters a few years ago.

Rosaleia Shelton

Appeal to find 19-year-old missing from Bloomington

The teen left her home on Monday afternoon.

hospital, emergency room

Deaths of twin fetuses after woman was shot ruled a double homicide

The woman was shot in the abdomen in mid-September.

Payton Willis / Gopher Basketball

Gophers improve to 5-0 with win over Jacksonville

The Gophers are establishing momentum early in the season.

Related

Mall of America

Mall of America is no longer behind on its mortgage payments

After becoming delinquent following the government shutdown, MOA has revamped its loan and is now current.

hotel

Coronavirus: Mall of America hotel laying off nearly 100 workers

The Radisson Hotel Group earlier this month laid off workers from its downtown Minneapolis hotel.

Plans for MOA's giant waterpark get even bigger, as does the cost

The project could now cost as much as $250 million.

flickr-mall-of-america-mitchell-hirsch-march-2019

Mall of America owners facing opposition on request for tax aid

State legislators are divided on whether to help MOA.

Mall of America

MOA offers space for local businesses hurt by riots, pandemic

The Mall of America has announced 17 local vendors will set up shop in their space

verso Duluth Mill arial

2 companies announce mass layoffs in Minnesota due to COVID-19

Verso to layoff 225 in Duluth, MRCI has laid off 300 people since mid-March.

disney store

Disney store closing at the Mall of America

These are the latest changes at the Bloomington megamall.