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January 19, 2020, 05:46:42 pm
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Author Topic: Promenade Mall  (Read 19752 times)
TheArtist
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« Reply #90 on: July 22, 2019, 09:12:26 pm »

From Tulsa World Article....  https://www.tulsaworld.com/business/promenade-mall-s-mortgage-holder-seeking-foreclosure-on-the-property/article_7a9d7f3b-cf7c-5493-b235-00be8a87a49a.html?fbclid=IwAR2gRdM-LhjfrSl9XpDhD6frGd4dcZCdDkmy5CmmS3kjK4vnoGqkBCBabPA


"The holder of Promenade Mallís mortgage is seeking to foreclose on the loan, according to documents filed with Tulsa County District Court last month.

Ready Capital Corp., the original lender and current holder of the loan, alleges in court filings that the mallís owner ó a Delaware limited liability company ó has defaulted on the loan by failing to make payments from March 2019 forward.

Ready Capital Corp. also alleges that its collateral interest in the property is diminishing as a result of the mall ownerís failure to maintain the property and a suspected failure to direct all rents to the designated ďlock box.Ē Court filings claim the propertyís value has seen a three-year plunge from $25.9 million in a 2016 appraisal to $4.5 million per a recent estimation by NAI Farbman...."


I almost wonder if there was something to gain by the Mortgage Holder by loaning the money to these people that are known bad actors and "Mall Killers" ?   Like people who can get a tax write off from devalued property? 

All anyone has to do is look the company up online to find horror story after horror story....
https://en.m.wikipedia.org/wiki/Kohan_Retail_Investment_Group?fbclid=IwAR2GVoqL7jf1C1ChZCPIBaUdobqVM9aP2qjOp_9pYH_w1K_XfsWe_FK0owU


Kohan lost the Jamestown Mall in late 2011 due to foreclosure, but retained some ownership in late 2012.[1][10] The mall had previously declared bankruptcy in August 2011.[1] After purchasing Woodville Mall in 2009, it was closed in December 2011 by court order, and demolished by Northwood, Ohio in March 2014 due to its poor material condition.[32][33] Lincoln Mall suffered from serious material condition issues during Kohan's ownership and in August 2013 went into receivership.[15][34] Matteson, Illinois took over ownership in June 2014 and it closed in January 2015 after running out of money.[35][34][36] At the malls closure, over $10 million in fines and taxes was owed to Matteson by Kohan.[34] Lincoln Mall was demolished starting in May 2017.[37] During a 2013 police drug search, serious issues were discovered in Northland Mall's former Kmart that included mold, roof damage, and other major issues. Ownership also owed $141,081.61 in taxes to Nobles County, Minnesota.[38][39] The mall had serious material condition issues in April 2014 that Worthington, Minnesota took action on.[40][41] Worthington won a court decision about the former Kmart in June 2014, and demolition began in February 2015.[42] The mall was sold to 7&41 LLC in May 2015.[43]

Due to lack of payment on a $300,000 bill, Rotterdam Square Mall lost power on February 12, 2015.[2][44] The mall was later sold to ViaPort USA for $9.25 million.[45] Since its purchase, Berkshire Mall has suffered from serious tax issues with many payments being missed. Kohan has been taken to court several times over these issues and has narrowly avoided Berkshire's seizure.[24][46] Berkshire has also suffered from a series of power outages.[8] Kohan owed $627,789 in property taxes on the Washington Square Mall in 2017, and the mall was put up for tax sale.[21] The malls outstanding taxes were paid off in October 2018 for $1.1 million.[8] VF Factory Outlet Mall closed in October 2017.[33] Indian River Mall almost lost power in December 2017 due to unpaid electric bills and bounced checks totaling $428,175. The bill was paid the day electric was to be shutoff.[47]

Mayberry Mall was almost closed on February 1, 2018 by local government officials due to roof and mold issues. It was sold to WRS Inc. Real Estate Investments in 2019.[48][49] In August 2018, Kohan sued Clay, New York for a reduction in the Great Northern Mall's taxes, while owing $1.53 million to county government.[50] Due to the roofs poor condition, Effingham City declared Village Square Mall unsafe in August 2018.[51] Due to Kohan not paying Lycoming Mall's PPL electric bill, it lost power in late August 2018.[52] In September 2018, Southbridge Mall was sued by Cerro Gordo County for $177,324 in back taxes.[26][53] Those taxes were paid off in December 2018, with three of the previous four checks sent to the county bouncing.[54] Kohan owed around $550,000 on The Orchards Mall in various taxes before its sale in late 2018.[19]

Lycoming County Water and Sewer Authority placed Lycoming Mall on the February 2019 sheriff's sale list due to unpaid bills.[55] Kohan made a partial payment to stop the auction.[8][22] Chapel Hill Mall almost had power disconnected by Ohio Edison due to unpaid bills in April 2019.[7]




So what gives?  If I were the court I would say "Heck no, you knew what you were getting into and you knew what was likely to happen to the mall, how it could damage the area it is in, the jobs of the people who worked there, etc. and you didn't care!" thats immoral. If I could I would seize the mall, sell it to a reputable company, and turn around and fine the company that made the loan on top of what they are losing in order to teach them a lesson.
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« Reply #91 on: July 23, 2019, 11:23:20 am »

The only surprise in any of this is that the property was appraised for $25.9 million in 2016.  That is absurd, particularly when you consider that the Dillardís and Macyís buildings and the southside parking garage have separate ownership.

Unfortunately, this day has been obvious in coming for years.  Prying this property out of the hands of the current owner is the only way to have any hope that this dying mall can be repurposed into a modern use.  However, even if the receiver gets appointed and the foreclosure occurs quickly, I wouldnít get any hopes up that anything meaningful will happen in the foreseeable future.  It sounds like the capital for just the deferred maintenance will eat up all the revenues for years and a new buyer with a plan and a lot of money will have to be found.

Maybe now that the folks that transformed the old Eastland Mall have sold it, they are interested in tackling another Tulsa projectÖ.
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« Reply #92 on: July 23, 2019, 02:39:57 pm »

So what gives?  If I were the court I would say "Heck no, you knew what you were getting into and you knew what was likely to happen to the mall, how it could damage the area it is in, the jobs of the people who worked there, etc. and you didn't care!" thats immoral. If I could I would seize the mall, sell it to a reputable company, and turn around and fine the company that made the loan on top of what they are losing in order to teach them a lesson.

Iím not sure I follow your point or your solution.  It appears that the owner of Promenade is a real estate bottom feeder - buying distressed or struggling properties and attempting to squeeze whatever profit is left out of them.  Ready Capital loaned them money to do so and knowingly took a risk with such an operator.  Ready will likely take a hit and not recover all itís owed - which is its just deserts for loaning money to such a company in the first place.  Neither should get a Rotarian award for contributions to the Tulsa community, but both were doing what they do - trying to make a buck in a turbid niche real estate market.

The sooner the foreclosure process plays out, the sooner this property can be put on the market and start looking for a new owner.  Again, itís unlikely anything will happen fast, but up to now this property has been stuck in limbo with an owner that isnít going to invest in it to turn it around.  This is actually good news for Tulsa, even if it comes disguised as bad.
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« Reply #93 on: July 23, 2019, 06:45:46 pm »

Iím just hoping a local investment group can gain control that has the long-term vision of repurposing the mall into a mixed use development.  Unlike Eastland Mall this site is on two main arterial streets, within a half mile of I-44 and across the street from OU-Tulsa.  Some of the highest income neighborhoods in the city are to the northwest. 

Itís a drain on that area now but could be a catalyst to revitalizing the whole area around 41st & Yale.  Look no further than OKC to what they have planned for the 50 Penn site, mixed-use retail with office and housing.  Thatís what is needed here.
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« Reply #94 on: July 23, 2019, 07:23:13 pm »

Iím just hoping a local investment group can gain control that has the long-term vision of repurposing the mall into a mixed use development.  Unlike Eastland Mall this site is on two main arterial streets, within a half mile of I-44 and across the street from OU-Tulsa.  Some of the highest income neighborhoods in the city are to the northwest. 

Itís a drain on that area now but could be a catalyst to revitalizing the whole area around 41st & Yale.  Look no further than OKC to what they have planned for the 50 Penn site, mixed-use retail with office and housing.  Thatís what is needed here.

A major medical research facility?
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« Reply #95 on: January 17, 2020, 03:30:35 pm »

It's past time to stick a fork in the Mall
https://www.businessinsider.com/jcpenney-closing-stores-list-addresses-2020-1

El Chico's closed earlier this month / now they're loosing JC-Penney
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swake
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« Reply #96 on: January 17, 2020, 04:16:57 pm »

It's past time to stick a fork in the Mall
https://www.businessinsider.com/jcpenney-closing-stores-list-addresses-2020-1

El Chico's closed earlier this month / now they're loosing JC-Penney

I wonder if Dillards would like to move back to Utica.
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« Reply #97 on: January 17, 2020, 05:05:20 pm »

Every time news breaks of another shop in Promenade closing I am reminded that it is still actually open in some capacity. I really should stop in sometime for old time's sake just to see it one last time.

I feel like everyone has discussed it's demise for years now. Just turn it into offices already.
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