The Grand Traverse region's three major shopping centers -- Grand Traverse Mall, Preferred Outlets, and Cherryland Center -- are all in flux, each facing its own financial difficulties and possible new ownership.

Grand Traverse Mall appears to be suffering from a one-two punch: its parent company, General Growth Properties' recently emerged from bankruptcy, while a challenging retail environment continues. According to documents obtained by The Ticker, the Mall's income through June was barely covering its debt service. Although the Mall's loan is not delinquent, it was transferred to a "special servicer" in October. A special servicer typically handles loans that require unusual attention such as those about to go into default.

When the original Grand Traverse Mall loan was underwritten in 2005, the shopping center was valued at $114.1 million. As of the latest update (April 2009), the property is now worth $73.7 million, which is less than the unpaid principal loan balance.

When asked about the Mall and its financing, General Growth Spokesperson David Keating said, "We are reviewing all our options at this time.  Grand Traverse Mall remains open and operating under the business as usual philosophy."

Less than a mile north on US-31, Preferred Outlets will likely soon have new owners. Brad Cruickshank of The Woodmont Company of Forth Worth confirms his company is "working with a prospective buyer."

Last year, the outlet mall's owner, Williamsburg, Va.-based Ariel Preferred Retail Group, was dissolved after it and its parent company, Prescott Capital Management, defaulted on an approximate $90 million loan. Woodmont took over management of the property at that point.

Local developer Jerry Snowden had made an offer to purchase Preferred Outlets in 2008, but the deal was never finalized. Snowden would not comment on the mall's current situation, though he is not believed to be the party in purchase negotiations at this point.

Traverse City's first mall -- Cherryland Center -- remains in court-ordered receivership after Southfield-based Schostak defaulted on its mortgage last fall. McKinley, a property management company, has been managing the property on behalf of Wells Fargo Bank, the lender.

Per the terms of a receivership, Schostak still has a few months to pay full the mortgage and take back ownership, though sources say a more likely scenario is that McKinley will be in place until Wells Fargo is able to sell the property.

All three troubled shopping centers are located in Garfield Township, but Township Supervisor Chuck Korn believes the troubles are more about retail reality than about the Grand Traverse region or the mall operators.

"To me, it means that the last several years have been very difficult for retail. It's been the same all over the country. But I believe it's bottomed out and we're moving in an upward direction," he said.