Park Plaza Mall, the insolvent Little Rock mall, is scheduled to go up for auction on Oct. 28, according to a commissioner’s sale notice posted on the Pulaski County circuit / county website.
But the chances of the county accepting and accepting an offer from an “ordinary real estate investor” at the public auction are “low or zero,” according to Kimberly Glover, court administrator and circuit commissioner.
The auction will be held at noon outside of Room 120 at the West Markham Street entrance to the Pulaski County Courthouse.
Pulaski County auctions are held regularly on Thursdays at noon, Glover said. More generally, auctions relate to foreclosure decrees against single-family homes.
“In these cases, we have third parties, usually real estate investors who come in to bid on properties and become the owner if they successfully bid on the property,” Glover said.
The Park Plaza auction commissioner’s notice of sale was filed shortly before 5 p.m. Monday and came nearly a month after Pulaski County Circuit Judge Alice Gray handed down a judgment of $ 86.2 million of dollars against the owner of the mall and granted immediate possession of the property to the Deutsche Bank Trust Company Americas. , the trustee of the holders of the initial loan against the shopping center.
The 13-page order also stated that if the judgment was not satisfied within 10 days, Deutsche Bank was entitled to sell the property in a judicial sale.
The foreclosure decree came a month after mall owner CBL Properties of Chattanooga, Tenn., Obtained approval for its bankruptcy reorganization plan, effective November 1, a year after the owner of the regional shopping center filed for bankruptcy.
Park Plaza, one of 107 properties owned by CBL at one point in time, is no longer listed on the company’s website. CBL told Deutsche Bank lawyers that it no longer wanted the property. Other than accepting a receiver, Fred Meno of Woodmont Co., CBL did not provide a formal response to the foreclosure complaint filed in January.
The foreclosure resulted from a $ 99.4 million loan that the owner of the mall, doing business as Park Plaza Mall CMBS, LLC, obtained from Wells Fargo Bank on March 24, 2011. The loan then proceeded. was sold to Deutsche Bank.
Park Plaza CMBS has said in court documents that the property is not generating enough income to make the required loan payments.
Woodmont Co., as part of its escrow responsibilities, has marketed the space available for rent at Park Plaza on its website, describing the property as “Little Rock’s premier mall.”
The mall covers 547,000 square feet, including two Dillard locations that were not part of the sale. Dillard’s owns its stores on the site, which is considered the flagship properties of the Little Rock department store chain.
Deutsche Bank senior lawyer Charles T. Coleman of Wright’s Little Rock law firm, Lindsey & Jennings, said Tuesday that his client “asked me not to visit the press about the ‘Park Plaza case’.
In another court document that Coleman helped prepare, however, Deutsche Bank assigned its “right, title and interest” in the foreclosure decree against Park Plaza to a state-registered limited company on September 16. and called RSS WFRBS2011-C3-AR PPM, which will likely become the owner after the auction ends.
The LLC’s agent has the same address as another Little Rock law firm, Eichenbaum Liles. Its officers include Rialto Capital Advisors, LLC, which is listed as its manager; and Sorano Georgescu, who is listed as founder and organizer.
Rialto is a Miami-based real estate investment and management firm. Georgescu is the firm’s associate general counsel, according to her LinkedIn page. The company specializes in, among other things, commercial mortgage-backed securities and “distressed / non-performing loans”.
Jay Chesshir, president and CEO of the Greater Little Rock Chamber of Commerce, remains optimistic that whoever ultimately takes ownership of Park Plaza will be able to revive the property, especially since it is located in Midtown. ” in the midst of the health of the city “. care corridor and anchor tenant.
“I really believe that another developer, perhaps in a better position, will go ahead and transform Park Plaza into what the future of retail will look like, which will not look like what Park Plaza used to be in. the past, ”he said. noted.
Chesshir said he did not personally know of any developer actively pursuing the acquisition of the mall, but said he was “sure there were conversations going on with potential developers to step in and do these things.”