Eureka’s Bayshore Mall Headed for Trustee Sale

A beleaguered Northern California shopping center is heading for the auction block as pressure mounts on rural retail assets.

Bayshore Mall in Eureka is slated for a trustee sale April 17 at the Humboldt County Courthouse as the nearly 40-year-old property grapples with nearly $39 million in debt, the Eureka Times-Standard reported. City Manager Miles Slattery confirmed the looming sale to S.F. Gate and called the situation “really weird” given that the mall currently does not have a proper owner and is being managed on behalf of creditors.

Syracuse, New York-based Spinoso Real Estate Group took control of the mall through receivership and has been managing the property while exploring a turnaround. That effort now appears to be shifting to a new owner, if one emerges. Arizona-based attorney services firm M.K. Consultants will handle the trustee sale.

On its watch, Spinoso Real Estate Group’s priorities included “stabilizing operations, supporting tenants and exploring strategies that align with the mall’s role in the community and the evolving retail landscape,” CEO Carmen Spinoso told S.F. Gate last year. If the property comes under new ownership, it doesn’t mean the troubled retail center would close, as there have been parties who have expressed interest in purchasing the property and trying to attract larger anchor tenants, Slattery said.

“Anything can happen,” Slattery said. “The most viable thing to do would be to keep it as a retail center and try to get a bigger anchor tenant there.”

Bayshore Mall’s struggles mirror that of other distressed properties such as San Francisco’s recently acquired San Francisco Centre mall and Danville’s former luxury mall, Blackhawk Plaza, which filed for Chapter 11 bankruptcy after owing between $10 million and $50 million.

Anchor closures, dwindling foot traffic and deferred maintenance have sent retailers rushing for the exits at shopping centers like Bayshore Mall. Anchor tenant Sears closed its doors in 2019, and smaller operators followed suit. Humboldt Clothing Company closed last year after 25 years, with owner Angel Young telling S.F. Gate the decision was made following declining sales tied in part to the loss of key foot traffic drivers such as a Department of Motor Vehicles outpost.

When a Walmart on site closed, so too did an entrance to the mall, further hurting visitor numbers, Young said. Those closures were the “nail in the coffin” for Bayshore Mall’s foot traffic, according to Young.

— Chris Malone Méndez