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Indiana Mall Facing Foreclosure in Starwood Debt Restructuring Shows Deepening Retail Struggle

Negotiations With Israeli Lenders Are Proceeding on Six Other US Retail Centers

A foreclosure auction has been set for Southlake Mall in Merrillville, Indiana, according to a regulatory filing in Israel. (CoStar)
A foreclosure auction has been set for Southlake Mall in Merrillville, Indiana, according to a regulatory filing in Israel. (CoStar)

In one of the largest shopping center undertakings in the pandemic, Israeli court-appointed trustees overseeing seven U.S. regional malls owned by Starwood Capital affiliates said they face foreclosure on one property and are trying to negotiate a four-year extension on loans backing the other six.

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