After falling behind on loan payments, CityPlace Partners, which is controlled by Miami Dolphins owner Stephen Ross, has negotiated a two-year extension of its $150 million mortgage on the downtown shopping center.
According to a document filed with the Palm Beach County clerk’s office, the maturity of the loan has been moved back to December 2018. The original loan, issued in 2006, was scheduled to end in 2016.
CityPlace defaulted on its loan this year, and in September loan servicer CSMC 2007-C1 South Rosemary filed a foreclosure proceeding on the property.
The loan modification document filed this week doesn’t indicate whether the 6.27 percent interest rate on the original loan has changed. CityPlace Partners wouldn’t comment on details of the loan.
“The revised terms realign the loan and extend the maturity date, ensuring the continued long-term success of CityPlace as the preeminent entertainment and retail destination in South Florida,” CityPlace Partners said in a statement released Thursday.
Although CityPlace’s retail occupancy remained at 93 percent as of March, according to a report from Fitch Ratings, a recent appraisal of the property listed its worth at $143 million, down from a boom-time value of $233 million.
Reflecting a tough economy, seafood restaurant McCormick & Schmick’s told CityPlace it plans to close its 10,000-square-foot restaurant on Feb. 5. In a civil suit filed this week, CityPlace Retail LLC accused the restaurant chain of breach of lease for seeking to move out before its lease expires.
The McCormick & Schmick’s at 651 Okeechobee Blvd. reported sales totaling $2.5 million for the year ended Sept. 30, according to the suit.
Source: Palm Beach Post
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