Greeley Mall now bank-owned

GREELEY — The Greeley Mall went back to the bank Wednesday, when the
lender on the foreclosed property bid $33.8 million at a thrice-delayed
Weld County public trustee’s auction.

Chicago-based GK Development bought the mall for $41.4 million in 2006.
The mall went into foreclosure in July with the entire note owed, and
the court appointed real-estate services company CB Richard Ellis
receiver a few months later. CB Richard Ellis managed the property while
GK worked with its lender, Miami Beach, Fla.-based LNR Property LLC, to
restructure the loan.

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The property was originally scheduled to go to public auction Dec. 8,
but a lack of bids pushed that date back several times. The bidder of
record is MLCFC 2006-4 Greeley Retail LLC, a servicer of LNR Property,
according to the Colorado Secretary of State’s office.

The mall is expected to continue operations while CB Richard Ellis wraps
up its receivership, but its future will be up to the new owners when
they take charge of the mall in a month or two.

The Greeley Mall has seen several major tenants depart over the last few
years, including Montgomery Ward, The Gap and Dillard’s, which is
reportedly interested in opening a store in a redeveloped Foothills Mall
in Fort Collins. But it’s not the only local shopping center fallen on
hard times.

Greeley Plaza West, at 1020 28th Ave. anchored by TMG Marketing, went to
a foreclosure sale in October with a debt of almost $1.5 million, and
the Promenade Shops at Centerra went back to its lenders in June before
it was purchased by a New York investment group in December for $75.5
million.