FairOaks Mall is scheduled to go on the auction block May 14 to settle debts with creditors who successfully sued to foreclose on the 415,000-square-foot shopping center.
The mall will be up for sheriff’s sale at 10 a.m. that day, a spokesman for the Bartholomew County Sheriff’s Office said.
Bartholomew County Superior Court Judge Jim Worton approved the sheriff’s sale last week.
Real estate professionals are eager to see how much interest the mall attracts from regional or national bidders. Opinions are split on how much interest there will be in buying and trying to revive the mall, which has a $21.2 million unpaid debt on its mortgage and related fees. The mall is about one-third vacant.
The mall, located off 25th Street near Central Avenue, has been owned for the past decade by Fair Oaks Mall Acquisition LLC of Lakewood, N.J., but the owners agreed in court to surrender the property to Wells Fargo Bank so it can be sold to settle debts.
The sheriff’s sale will take place 13 months after Wells Fargo, acting on behalf of numerous mortgage holders in a real estate trust, filed the foreclosure lawsuit to collect principal, interest and other fees tied to a past-due $17.5 million loan signed in June 2006.
Leases of tenants at the mall remain in force even if a new owner buys the shopping center at sheriff’s sale or acquires it later from the lender.
At last count, court records show FairOaks owed $21,195,621 in principal, interest, assorted fees and legal bills tied to that 10-year mortgage document.
The suit contended Fair Oaks Mall Acquisition defaulted on its loan by missing eight $119,586.75 monthly payments between October 2010 and May 2011. That led to the entire loan being called via a demand letter that was sent to the mall’s owners May 10, 2011.
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