The DuBois Mall that was foreclosed on after its owners failed to repay at least $33.5 million was auctioned Thursday with a credit bid of $29.2 million.
The U.S. District Court for the Western District of Pennsylvania provided legal notice of a receivership sale for the mall earlier this year.
The mall’s management company, Jones Lang LaSalle Inc., or JLL, a commercial real estate firm that took over Jan. 18, 2018, conducted the public sale at the mall located at 690 Shaffer Road, Sandy Township, Clearfield County. The DuBois Mall was previously owned by a group with multiple investors. According to the legal document, the defendants were Gemini DuBois Mall H, LLC.
The mall originally opened in 1972.
In February 2018, JLL was appointed by the court as the receiver of DuBois Mall. JLL is also serving as the leasing agent and manager of the mall.
At Thursday’s auction, Lang LaSalle Retail Senior General Manager Daymon Ward said consent judgment and mortgage foreclosure was entered by the court in the foreclosure action on Jan. 16. The approximate amount due plaintiff (U.S. Bank National Association) on execution as of June 11, 2018, is $33,505,543.39, with continuing interest and cost thereafter.
“As receiver, I make no representations expressed or implied as to the existence or validity of any liens or encumbrances on the property, which is subject matter of this sale,” said Ward.
The bidding requirements were as follows:
- Twenty percent of amount bid will be required as a nonrefundable deposit at the time the property is struck down in cash or certified check to be held by the receiver.
- Balance to be paid no later than 30 days following the date of the sale.
- If, after the property being struck down the successful bidder does not make the required deposit, then the property will be sold to the next highest bidder.
- Plaintiff will not be required to post a deposit or tender cash on any credit bid it makes.
Nick Godfrey, an attorney at Dinsmore & Shohl LLP, of Pittsburgh, made a credit bid of $29,256,877.92 on behalf of the plaintiff note holder, U.S. Bank National Association. Credit bidding permits a secured creditor to bid for and purchase its collateral using the debtor’s outstanding debt as payment.
Godfrey made the lone bid at the auction.
“Going once, going twice, it is sold on behalf of the plaintiff,” said Ward.
After the auction, Godfrey declined comment.
In a statement released via telephone, JLL management said, “The most important thing for you to know is that the legal proceedings that are occurring will have no impact on the shoppers or retailers operating at DuBois Mall. The auction sale is part of the legal process. Like any other types of properties, shopping malls are bought and sold. The sales do not in any way impact retailers or consumers. It’s important for everyone in the community to know that DuBois Mall is open and ready for business as usual. We do not expect any operational interruptions to the mall. We encourage everyone to continue to shop local and visit www.duboismallpa.com for the latest events and offers here at the local mall.”
Mall management declined to answer any further questions.