The three giant towers, which cover about 5 million square feet, house showrooms for furniture manufacturers and representatives that try to land orders from the retailers attending the market. Most of the showrooms are dark for all but two weeks a year.
The agent representing the lenders in reworking the $557.1 million in mortgages on Buildings A and B reported this month that it was "finalizing the terms of a loan modification and reinstatement." This marked progress from previous monthly reports, published by research firm Trepp LLC, that merely said negotiations were continuing.
World Market Center defaulted on the loans in April as companies that leased showrooms went out of business or moved out to save money, driving up vacancies and cutting rental income. Reports by the lenders’ agent, known as a special servicer, said the occupancy in Building A had dropped from 99 percent when it opened to 85 percent in June 2009, the most recent date available. Building B occupancy had fallen 98 percent to 75 percent, with no numbers for Building C. Maricich declined to give any data but said the effective occupancy ran higher due to temporary leases instead of the five-year ones signed by permanent tenants.