Third party will manage St. Cloud mall while foreclosure lawsuit plays out

ST. CLOUD — A Stearns County judge has appointed a receiver to temporarily manage and operate Crossroads Center mall amid an ongoing lawsuit about unpaid mortgage payments.

U.S. Bank Trust Co., a subsidiary of U.S. Bancorp, filed suit in July against St. Cloud Mall LLC, affiliated with New York-based Brookfield Properties. The lawsuit initiated foreclosure proceedings and asked the court to allow for the sale of the property and to enter a judgment against the owners in excess of $84 million, which the mall's owner owes on the principal, as well as interest and other fees.

In August, both parties submitted a joint motion to appoint a receiver, which is a neutral party that does not have any involvement or affiliation with the property, noteholder or borrower.

Last month, Judge Laura Moehrle issued an order appointing Trigild, a commercial real estate company, as the receiver to "take possession of and protect the property" and "manage and operate the same and collect rents and any other income generated," court documents state.

The receiver is authorized to employ managing and leasing agents, attorneys and other professionals necessary for orderly and efficient management. Trigild will earn $250 an hour or $3,000 a month, whichever is greater, for its services.

The lawsuit states the borrower first failed to make payments on the mortgage in August 2020 and has missed all subsequent payments.

Brookfield did not respond to a request for comment. The company told the Star Tribune in April that it is "constructively working with the lender to identify the best possible outcome for the future of the shopping center community."

Ballard Spahr law offices, which is representing U.S. Bank, also declined to comment.

Crossroads Center is the largest regional shopping mall in the state outside of the Twin Cities. It opened in 1966 with about two dozen stores and has expanded to nearly 900,000 square feet of retail space. Current anchor stores include J.C. Penney, Macy's, Scheels and Target.