BELLINGHAM, Wash. – A global credit company says the owners of Bellis Fair Mall have fallen behind on their loan payment.
DBRS Morningstar issued a report in early February, claiming that Brookfield Property Partners defaulted on the remaining $77 million loan taken out on the mall.
Prior to last month’s payment deadline, DBRS Morningstar said that Brookfield had been consistent in paying off the loan on time, even during the pandemic.
Brookfield acquired the initial $93 million loan for the mall in 2018.
DBRS Morningstar said in their report that they have tried to contact Brookfield for regular updates on their repayment, but have not received a response.
A commercial real estate expert in Bellingham says the mall owner has likely been hobbled by the lack of shoppers from Canada.
“The occupancy rate at the Bellis Fair Mall over the last 30 years has been directly tied to, or correlated with, the Canadian exchange rate,” said Pacific Continental Realty’s Ryan Martin. “When it gets down to that 75 cent to a dollar range, the occupancies always suffer.”
Pacific Continental Realty founder and broker Ryan Martin says the re-opening of the border should help but any rebound will be slow.
He says a continued default would likely prompt a move to install a new management team that would make sure the bills get paid and the mall stays open.
“I think you’ll still be able to get your Buffalo Wild Wings and Chipotle here in the coming months,” said Martin.
Martin and his company aren’t directly involved with Bellis Fair Mall but he’s watched it closely as it’s the largest commercial real estate property in Whatcom County.