The loan is 70 percent secured by the mall, which was built in 1975. With an appraised value of $25 million, the mall is likely to fetch much less than what is owed on the loan, Barrie said.

The original $1.1 billion loan on Regency Square and several other commercial properties across the country was done in 2002.

It just happens that Regency makes up a large chunk of the remaining loan, so industry watchers are monitoring what happens to the mall and the resolution of the loan. Most of the original loan has been paid off.

The most recent owner of Regency Square, Michigan-based Taubman Centers Inc., walked away from its mortgage on the mall in 2010, turning over the deed to the lender instead of defaulting on the loan and having the property go into foreclosure.

Taubman developed and built Stony Point Fashion Center in Richmond, which opened in September 2003, two weeks after Short Pump Town Center in western Henrico opened — both rivals to Regency Square. It is in the process of selling Stony Point to Starwood Capital Group, a private equity group.

The special servicer of Regency appraised the value of the mall at $25 million, according to Trepp. However, an appraisal reduction indicates the recovery proceeds would be $21.6 million, Barrie said.