Simon Property's Mall Defaults - "They Won't Be Alone"

A Long Island mall partly owned and managed by Simon Property Group SPG.N has defaulted on a $124 million balloon mortgage payment after two of the main stores there filed for bankruptcy.

"Right now there's a shortage of refinancing dollars in the market place and yes, they're not going to be alone," said Thomas Fink, senior vice president of Trepp, which tracks the commercial real estate loans. The loan for the Mall at the Source had been securitized as bonds in a commercial mortgage-backed securities (CMBS) trust.