Mall Of America Is Caught Up On Back Rent
For everyone who enjoys the Mall of America which includes people from all over the world, this past Spring was a rough go for the meg a mall when they fell behind on their mortgage payments due to the COVID-19 Pandemic. The M.O.A. was closed from mid-March to June and so were the businesses in the mall.
In effect the owners modified their $1.4 billion loan and are no longer delinquent. In a statement to Bring Me The News:
While most businesses struggled with this new reality; the retail, hospitality, travel and tourism, restaurant and attraction segments were especially hard hit. Government-mandated closures and restrictions impacted these industries even more dramatically leaving many of our tenants unable to pay rent. Facing these unprecedented economic times, we immediately began to work with our lending partners to address the cash flow issues created by this loss of revenue. We are pleased to have been able to resolve the outstanding issues to the satisfaction of all parties involved which included a modification of the loan term.
With 520 stores at The Mall Of America that is a lot of revenue lost when you do not have the normal flow of traffic and shoppers from not only all around the country but the world as well. Nickelodeon Universe and all the other attractions remain closed and as of November 21 retail stores remain open, but restaurants can only offer food for takeout and delivery since indoor seating is not allowed. This could also change tomorrow when Governor Walz releases his plan for an update on his policies for restaurants and bars.
This past Summer when malls and other businesses were able to re-open they also faced the challenge of only allowing a certain number of customers in the their stores or business and also having to deal with mask policies that they needed to enforce. This past holiday season showed some positive signs for the retail industry, but they are also constantly competing with people shopping online. But at least the Mall Of America has a reprieve for now and hopefully things will turn around this year for not only them but for all businesses.