Fair Oaks Mall Gets Long-Term Loan Extension, New Management
By Nick Trombola April 11, 2024 1:09 pm
reprints
One of the largest malls in Northern Virginia has a new owner — or at least a new full owner.
New York-based Olshan Properties has assumed full management control of Fair Oaks Mall in Fairfax, Va., taking over from former ownership partner Taubman Centers, Olshan announced Wednesday. With that, Olshan also secured a “long-term” extension for its nearly $240 million CMBS loan for the formerly distressed mall.
Olshan and Michigan-based Taubman co-developed the nearly 1.6 million-square-foot mall in 1980 and were 50-50 management partners, according to Olshan’s website. A spokesperson for Olshan declined to offer details on why Taubman, which was acquired by Simon Property Group in 2020, relinquished its stake in the property.
Spokespeople for Taubman and Simon did not immediately respond to requests for comment.
The mall’s financial situation provides some clues. After narrowly avoiding default on the roughly $240 million of debt on the property last May, the partnership ultimately did miss the extended payment deadline in November. Bank of America, Wells Fargo and Barclays originated the loans in 2018, according to the Washington Business Journal.
Those loans were backed by a 780,000-square-foot central portion of the mall. The new extension pushes the payment deadline back by five years, according to Olshan’s spokesperson.
“The loan extension marks a significant milestone in Olshan’s commitment to the long-term success of the property,” Olshan CEO Zachary Bornstein said in a statement.
Now that Olshan has taken over management, and the property’s financial situation is more stable, Olshan’s spokesperson said the company has renovation plans in store, though did not offer further details.
Fair Oaks Mall is not the only shopping center in Northern Virginia to change hands recently. A joint venture between Ideal Realty Group, Rock Creek Property Group and The Sigmund Companies acquired four regional shopping centers in Dale City, Va., for $52.8 million in August. Meanwhile, Dulles Town Center in Sterling, Va., was acquired by a local private investor in December for $46 million.
Nick Trombola can be reached at ntrombola@commercialobserver.com.
