Brookdale sold at auction for big markdown

Article by: SUSAN FEYDER , Star Tribune
Updated: February 26, 2010 - 10:39 PM

A sheriff's foreclosure auction produced just one bid -- from the mall's mortgage-holders, who bid $12.5 million.

hide

Brookdale Shopping Center

Photo: Glen Stubbe, Star Tribune

Cart Buy Photos

Camera Star Tribune photo galleries

Camera view larger

199
comments
resize text
print
buy reprints

Tweet
share

email
Email share

your name

your email

recipients email

+ add a comment add a comment

Brookdale Center went on the auction block at a sheriff's foreclosure sale Friday, netting just one bid of $12.5 million from the shopping mall's lenders.

The bid from Brookdale Mall HH LLC was well below the $51.8 million owed on a $54.2 million mortgage by the property's owners, Brooks Mall Properties of Coral Gables, Fla.

A representative of the lenders declined to comment on the bidding or plans for the Brooklyn Center shopping mall. Other real estate experts said the low bid could make it easier for the owners to redeem or other buyers to purchase the property.

Brooks Mall Properties had agreed to a voluntary foreclosure, so the redemption period will be two months rather than six. Representatives of the firm could not be reached for comment Friday.

The foreclosure doesn't mean the 47-year-old mall, the second-oldest of the Twin Cities' "Dales," is closing.

Brookdale's struggles began well before the retail market meltdown, and its problems have worsened since then. Sears is its sole remaining anchor. In the last couple of years Macy's, Barnes & Noble and Mervyn's have all closed their stores. The mall also has lost other key tenants, such as Steve & Barry's. Almost 60 percent of its space is vacant, according to recent figures from NorthMarq.

The mortgage on Brookdale has been held by three lenders -- Capmark Finance, Urban Development Fund II LLC and Paramount Community Development Fund LLC. The lenders subsequently assigned their interests in the mortgage to Brookdale Mall HH LLC, a business entity incorporated in Delaware.

Susan Feyder • 612-673-1723