LNR rejects top auction bid for mall in Vermont that just signed Target

The highest bid was $44.5 million, but that was $300,000 under the appraised value of the 609,493-square-foot mall in July 2017

University Mall in South Burlington Vermont (Credit: LoopNet)
University Mall in South Burlington Vermont (Credit: LoopNet)

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.

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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