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Foreclosed mall once valued at $190M is auctioned for $100

Scorpio

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#1
Foreclosed mall once valued at $190M is auctioned for $100
13 hours ago


TARENTUM, Pa. (AP) — A Pennsylvania mall that was foreclosed on after its owners failed to repay $143 million has been auctioned off for $100.

Wells Fargo Bank was owed the money from a 2006 loan and submitted the winning bid for the 1.1 million-square-foot Galleria at Pittsburgh Mills on Wednesday. The bank was acting as trustee for MSCI 2007 HQ11, the trust that bought the mall in suburban Frazer Township.

Wells Fargo foreclosed last year on the mall, which opened in 2005. The mall once was worth $190 million but recently was appraised at just $11 million and is slightly more than half occupied. Pittsburgh Mills Limited Partnership defaulted on the loan.

Wells Fargo and the mall's new owners haven't commented on the purchase.

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This story has been corrected to show Wells Fargo Bank acted as a trustee, it didn't buy the mall, and it was the mall, not the bank, that was auctioned off.


https://www.yahoo.com/news/pittsburgh-mills-mall-scheduled-foreclosure-143108414.html
 

GOLDBRIX

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#2
IF there had been ANY other bidders the so-called "winning bid" could have been much higher.
After all the winner had 11 million more reasons to keep bidding just no competition.
 

Professur

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#3
I wonder how well publicized the sale was.
 

GOLDBRIX

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#5
I wonder how well publicized the sale was.
The usual rule is a notice posted in a local paper 30 days in advance.

If Wells Fargo is the agent for the New Owners and holder of the previous "Bad Paper" of the foreclosure then the $100.00 Foreclosure Purchase is simply a paperwork exercise and incorporated into the financial contract with the new owners.

I see Wells Fargo will have close to a 132 Million dollar LOSS it will get to write-off against other profits.
 

D-FENZ

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#6
Having been involved with similar foreclosure situations, I am quite certain that Wells doesn't just walk with this thing for $100. In addition to the paper they're holding, my hunch is that there is also an unpaid tax lien on the place that rivals- even dwarfs the appraised value. That hundred bucks will probably look like a rounding error.

And judging by the names on their half-filled signboard in the photo - including ITT Technical Institute- it could get a lot worse. Their best asset might be a gas royalty deal from a fracking operation flaring in their backyard. But the building could still go down under a wrecking ball just to slow the tax bleed.
 

GOLDBRIX

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#7
It is still >50% occupied. Hopefully better occupants than ITT tech.

11 million dollar property value, minus previous unpaid Tax Liens.
New Owners might have purchased a gold mine if TRUMP does get the economy turned around.
 

Irons

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#8
The top 3 stores on their sign are dead horses!
 

the_shootist

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#9
The top 3 stores on their sign are dead horses!
...and a movie theater under those. Have to been to the theater lately? The places are ghost towns with a lot of riff raff hanging about