B
en Ashkenazy's Troubled Mall Gets Boost from Bloomingdale's Outlet Lease

    Ashkenazy Acquisition, led by Ben Ashkenazy, has leased a 20,000-square-foot storefront to Bloomingdale's Outlet at the Beverly Connection mall in Beverly Grove. The lease is a significant development for the struggling mall, which has faced financial difficulties since the pandemic.

    Ashkenazy purchased the two-story, 340,000-square-foot mall in 2014 for $260 million and financed it with three commercial mortgage-backed securities loans from Citigroup totaling $210 million. However, after the pandemic hit, foot traffic plummeted, and Ashkenazy began skipping loan payments. Since 2020, his CMBS loans have been managed under a special servicer.

    The mall's value has recently declined by 10%, with an appraisal this month valuing it at $193 million, down from its previous appraised value of $214 million. Ashkenazy is also facing legal issues in New York, where a judge ruled against him in a Union Station case, stating that he had sufficient resources to repay the loan but chose not to.

    The Bloomingdale's Outlet store is expected to open this year and will join other discount retailers such as Saks Off Fifth, Nordstrom Rack, T.J. Maxx, and Ross Dress for Less at the mall.