PSOF WA Holding LLC v. Fairlane Town Center Realty Holding LLC ($28M+ Dearborn Mall Receivership)
Fairlane Town Center, a 1976-built regional mall in Dearborn, Michigan, has been under a court-appointed receiver since January 2026 -- its second receivership this decade -- after owner Kohan Retail Investment Group defaulted on a $28 million loan originally issued in April 2023. Peachtree Group affiliate PSOF WA Holding LLC sued in Wayne County Circuit Court in November 2024 alleging missed payments, $2.96M in delinquent property taxes, and diverted rental income; Kohan disputed the allegations, and a judge initially denied receivership in January 2025 before later granting it. The court-appointed receiver is now preparing bidding and sale procedures for a future sale, with the outstanding loan balance reported at more than $35 million as of July 2026.
Why it matters
An instructive, multi-year case study in serial mall distress: Fairlane has now cycled through four ownership groups and two receiverships since 2014 (Taubman to Starwood to Centennial to Kohan), with each successive buyer inheriting -- and in Kohan's case, reportedly worsening -- the same underlying problem of a regional mall whose cash flow no longer supports its debt load. CRE lenders evaluating a buyer with Kohan's track record (multiple malls nationally have followed a similar pattern of tax delinquency, deferred maintenance, and eventual receivership under its ownership) should treat sponsor history as a first-order underwriting factor, and owners of other aging, moderately-occupied regional malls should recognize that occupancy alone -- Fairlane still has relatively few vacancies -- does not protect against foreclosure when debt service and tax obligations go unmet.
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