BEVERLY HILLS—The Saks Fifth Avenue establishment is being sold to another buyer, after the department store’s location at 9600 Wilshire Blvd. was foreclosed on, and will be put up for auction, the Commercial Observer first reported.
According to reports, the parent company of the store, Hudson’s Bay and Simon Property Group missed several mortgage payments on the property. After Wilmington Trust, a lending company, filed a lawsuit, they are being forced out and could suffer more financial penalties.
Saks Fifth Avenue is attempting to reconcile the matter, and resolve any problems as a result of financial issues from the COVID-19 pandemic.
According to a spokesperson for Saks Fifth Avenue, the store’s operations are not going to be affected, as their lease is expected to run all the way through July 2035.
The 156,267 square foot property, which is just blocks away from Rodeo Drive, as well as the Four Seasons Beverly Wilshire, which was used in the movie “Pretty Woman” starring Julia Roberts and Richard Gere, is partially financed by a nearly $850 million CMBS loan from a portfolio of Saks Fifth Avenue and Lord & Taylor properties nationwide.
It was provided in 2015 by JPMorgan Chase, Bank of America and Column Financial, where the CMBS loan was transferred to special servicing in the beginning of 2020.
Saks Fifth Avenue has suffered from the COVID-19 pandemic, with more than 6 percent of CMBS loans in the Los Angeles area being deemed delinquent.