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A sale from foreclosure will result in a sale... the question is: to whom?
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Um, right. Sorry if I confused anyone on that point.
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The worst that can happen is a short-term downturn in investment.
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That can easily undue this:
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the premiere retail space in Central Oklahoma.
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The saving grace is that these sort of stores really don't have anywhere comparable to go so if they want to remain in this market
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That is, if they
can stay in the market. Since we're mostly talking national chains, their overall performance decides their fate much more so than anything that happens in Oklahoma City. That is to say, there is no store at Penn Square that can float any of their parent companies.
So, really, it is possible that if Simon can not afford to reinvest in the properties because of its increased exposure and some national chains close some stores or go under, these properties could suffer a real downgrade. Worst case is that Simon is unable to service the debt in addition to losing some stores and has to liquidate the property with fewer tenants, possibly even with a couple less anchor tenants and a bargain buyer has to fill the vacancies with lower quality merchants while none of the major department stores or niche chains are looking to expand.
But that's just doom and gloom you'd most likely hear from Baby Boomers. : )
Fact is, retail hasn't quite dropped like most thought it would have by now.