Foreclosed mall once valued at $190M is auctioned for $100

[TexasTowelie]

TARENTUM, Pa. (AP) -- A Pennsylvania mall that was foreclosed on after its owners failed to repay $143 million has been auctioned off for $100.

Wells Fargo Bank was owed the money from a 2006 loan and submitted the winning bid for the 1.1 million-square-foot Galleria at Pittsburgh Mills on Wednesday. The bank was acting as trustee for MSCI 2007 HQ11, the trust that bought the mall in suburban Frazer Township.

Wells Fargo foreclosed last year on the mall, which opened in 2005. The mall once was worth $190 million but recently was appraised at just $11 million and is slightly more than half occupied. Pittsburgh Mills Limited Partnership defaulted on the loan.

Wells Fargo and the mall's new owners haven't commented on the purchase.

http://www.syracuse.com/us-news/index.ssf/2017/01/foreclosed_mall_once_valued_at_190m_is_auctioned_for_100.html

[Tanuki]

1. Well, that's a story that leaves a lot of unanswered questions!

I would have been happy to double the offer if I'd only known it was for sale!

[TexasTowelie]

4. I think that it had to do with the outstanding debt of $143 million for the mall.

http://pittsburgh.cbslocal.com/2017/01/18/pittsburgh-mills-mall-scheduled-for-foreclosure-auction/

With the mall being valued at only $11 million it and with Sears closing their store the only big store at the mall was Macy's. I also wonder how much publicity was given for the public auction.

[Doug.Goodall]

2. Today's young people are not as interested in the materialism of the 'Boomers

Being entertained by the "shopping experience" is not as popular as it was 20 years ago. I do not even see teenagers 'hanging at the mall' anymore.

[Sherman A1]

3. I have to disagree to a point

I believe the materialism is still very much alive and well. It is simply being serviced by more direct means of acquisition such as streaming services and online shopping. Time that was once filled with wandering in the mall, looking for and talking with friends is now spent doing the same online through the various services there in the realm of social media. One need not be physically next to your conversation partner in order to exchange the day's talk, one only need a means to video conference.

[DeminPennswoods]

5. Wells Fargo was the largest creditor at 143M

There was a story in the Pgh Post-Gazette about Pittsburgh Mills being sold. Wells Fargo is the largest creditor, being owed over 100M. The article stated that there's a proviso in bankruptcy law that allows the largest creditor to take ownership of the property if auction bids are less than what they are owed. It keeps bidders from getting property with low ball bids. Wells Fargo can now re-sell the property on its own, presumably for a much better price.

I believe this is also how Mario Lemieux ended up owning the Pittsburgh Penguins hockey team as he was the largest creditor at the time the team went bankrupt.

[modrepub]

6. Do you think the Wells Fargo Board

was "punished" for loosing $100M? Probably didn't even bat an eyelash when their compensation package was approved by their shareholders.