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How Will Latest Sears, Kmart Closings Affect CMBS?

Connect Retail West is set for January 25th at the Hurley Surf Club Pacific City in Huntington Beach, CA. Here’s where to get more information and register.

The latest round of retail closures by Sears Holdings Corp. could adversely affect roughly $302.5 million of loans in eight commercial mortgage-backed securities (CMBS), reports Morningstar. The Hoffman Estates, IL-based retailer said it plans to shutter 64 Kmart and 39 Sears stores this spring.

Among those 103 stores, Morningstar Credit Ratings found a total of 16 CMBS loans with a balance of $671.1 million.

Notably, Sears will be the second anchor closing at two locations, the Bangor Mall in Maine, which is already specially serviced, and the Hanford Mall in California. With the loss of multiple anchors, Morningstar warns that these properties could begin to lose in-line tenants if the anchor boxes are not backfilled.

Morningstar also notes, Sears has 305 locations backing 195 CMBS loans with an aggregate allocated principal balance of $12.68 billion.

Download more at Morningstar

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About Dennis Kaiser

Dennis Kaiser is Vice President of Content and Public Relations for Connect Commercial Real Estate. Dennis is a communications leader with more than 30 years of experience including as a journalist and in corporate and agency marketing communications roles. He is responsible for Connect’s client content operations and is involved in a range of initiatives ranging from content strategy, message development, copywriting, media relations, social media and content marketing services. In his most recent corporate communications roles, he led a regional public relations effort across Southern California for CBRE, played a key marketing role on JLL’s national retail team, and was responsible for directing the global public relations effort at ValleyCrest, the nation’s largest commercial landscape services company. In addition to his vast commercial real estate experience, Dennis has worked on communications and launch strategies for a number of residential projects such as Disney’s Celebration in Florida, Ritter Ranch in Palmdale California (7,200 homes, 22,000 acres), WaterColor in Florida and PremierGarage in Phoenix. Dennis’s agency background included firms such as Idea Hall and Macy + Associates. He has earned an outstanding reputation with organization leaders as a trusted advisor, strategic program implementer, consensus builder and exceptional collaborator. Dennis has developed and managed national communications programs for Fortune 500 companies to start-ups, both public and private. He’s successfully worked with journalists across the globe representing clients involved in major-breaking news stories, product launches, media tours, and company news announcements. Dennis has been involved in a host of charitable and community organizations including the American Cancer Society, Easter Seals, BoyScouts, Chrysalis Foundation, Freedom For Life, HOLA, L.A.’s BEST, Reach Out and Read, Super Bowl Host Committee, and Thunderbirds Charities.

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