Southridge Mall Rent Income Was Down By Millions Due To Deferrals

Greendale WI

25 May, 2021

1:03 PM

Description

GREENDALE, WI — Southridge Mall issued rent deferrals for its retailers that cut its expected rent income this year by millions of dollars, The Milwaukee Business Journal reported. What could have been $7.5 million in base rental income this year was whittled away to $43,047. The drastic reduction results from agreements between the mall and retailers to defer rent payments, the Milwaukee Business Journal reported. These agreements — revealed by a financial report from the mall's current operator, Spinoso Real Estate Group, are now rolling over into yearly rent for 2021, according to the Milwaukee Business Journal report. Separate contributions and repayments from last year's deferrals bring Southridge Mall's overall rent income back up to more usual levels, however, the Milwaukee Business Journal reported. The revelations about Southridge Mall's lost rent income throughout the pandemic only highlight its other issues: The mall has been in foreclosure since late last year. Its former owner, Simon Property Group, avoided high-risk mortgage debt tied up in Southridge and three other malls by foreclosing them, MarketWatch reported. The Greendale Board of Trustees decided on May 18 to purchase the former Boston Store site. The Village will now be on the hunt for new development opportunities at the otherwise abandoned building.