Half of the Burnsville Center shopping mall property has gone up for auction as part of foreclosure proceedings after its owner fell months behind on the mortgage.
More than 500,000 square feet of rentable retail space is up for grabs at the 1.1 million-square-foot mall. According to a report by KSTP, bidding started Monday and runs through Wednesday.
The auction does not include J.C. Penney, Macy's and the empty Sears, which own their spaces.
The online Ten-X listing shows as of Tuesday morning the latest bid was $8 million.
The Tennessee real estate investment trust CBL Properties, which owns Burnsville Center, announced during the summer it would cooperate with foreclosure proceedings after it fell behind on the 43-year-old mall's mortgage.
CBL took out the $83 million loan in 2010 and still owed about $63 million when it started missing its mortgage payments in April, according to data firm Trepp.
Earlier this year, CBL said in public financial filings that Burnsville Center had experienced a decline in income due to store closures and rent reductions. Like other shopping destinations, the mall was shuttered for two months in the spring because of the state's stay-at-home orders.
But the retail disruption plaguing Burnsville Center and other malls like it began before the coronavirus pandemic.
Burnsville Center has seen a departure of anchor tenants including Sears, which left in 2017; Macy's, which sent a notice to the mall in May that it would close; and J.C. Penney, which has filed for bankruptcy, according to Trepp.
Since malls have reopened, many have struggled to regain foot traffic, with some like the Mall of America falling behind on their mortgage.