LNR Partners held an auction for the largest shopping mall in Vermont but rejected the highest bid as Target prepared to open a store there.
A $44.5 million offer for the University Mall in South Burlington, Vermont, was the highest bid but lower than a July 2017 appraisal that put the mall’s value at $44.8 million.
The bidders included Mason Asset Management and the Boston-based developer of the mall, Finard Properties.
LNR is the special servicer for the repossessed mall, which is collateral for a delinquent loan with a face amount of $92 million. The loan matured in April 2017 and went into special servicing three months later.
Several new leases could lift the mall’s performance. Target, for example, has agreed to open its first store in Vermont at the 609,493-square-foot enclosed mall.
Other retailers that recently have leased space at University Mall include Christopher & Banks, H&M, Olympia Sports and Victoria’s Secret.
Located near the University of Vermont, the mall is now anchored by JCPenney, Kohl’s and Sears (which has a ground lease). [Trepp.com] – Mike Seemuth