Everett Mall to Make Payment to Avoid Foreclosure

The Everett Mall is facing foreclosure, and if the owner of this mall fails to clear the huge debt of $8,000,000 by July 9, this property will be handed over to the bidder making the highest payment at the auction which has been scheduled at the Snohomish County Courthouse on July 20, 2012. The foreclosure default notice sent to the owner of this property was published in The Herald.

In 2007, California based housing investment management firm, Steadfast Commercial Properties bought this mall, and this March, the company defaulted on their mortgage of $98 million taken for this mall. After defaulting on their loan in the beginning of March, the representatives of this company stated that they were dealing with their lending bank for a loan modification to save the Everett Mall from foreclosure.

In an email statement, Vice President at Steadfast Commercial Management, Lisa Whitney said, “We continue in discussions with our lender towards a positive resolution, and as both parties are currently working in good faith towards a positive resolution” as a reply to the questions that arose because of the issuance of the foreclosure default notice.

According to her, this notice of default is an element of normal foreclosure processing. Although she refused to disclose anything about the discussion between the Steadfast official and their lender, she stated that they were progressing with talks about a long-term loan modification for this mall.

Till April 18, the borrower was defaulting by $5.8 million, which includes late fees, attorney’s fees and interest dues, and by July 9, the amount will move up to $8 million.

After purchasing this mall in 2004 for $50.2 million, Steadfast invested a huge amount of money to redecorate and expand the mall’s area. Finally, in 2007, this company refinanced its loan through the Royal Bank of Canada. In the next year, recession swallowed the entire economy of the country, devastating the retail and housing sectors as well.

She also added, “Everett Mall has not been immune to the proliferation of retailer downsizing, bankruptcies and the subsequent vacancies that have occurred industry wide over the past 36-plus months”

The vacancy rate in this mall was 18% this March after this shopping plaza lost two of its important occupiers – bookseller Borders and cloth merchant Steve & Barry’s. Both left the mall due to bankruptcy. However, there are still a number of important occupants like Macy’s, Old Navy, TJ Maxx, Sears, LA Fitness and Regal Cinema, and according to Whitney, “Day to day, it is business as usual at Everett Mall for both our customers and retailers.”

Photo by Sscreations.