Half of Burnsville Mall up for auction - foreclosure

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Dano564

Dano564

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I didn't read the story in Strib, but I saw the headline.

I wonder what "half".

Who wants to buy "half" a mall?
 


More than 500,000 square feet of rentable retail space is up for grabs at the 1.1 million-square-foot mall. According to a report by KSTP, bidding started Monday and runs through Wednesday.

The auction does not include J.C. Penney, Macy's and the empty Sears, which own their spaces.

The online Ten-X listing shows as of Tuesday morning the latest bid was $8 million.

The Tennessee real estate investment trust CBL Properties, which owns Burnsville Center, announced during the summer it would cooperate with foreclosure proceedings after it fell behind on the 43-year-old mall's mortgage.

CBL took out the $83 million loan in 2010 and still owed about $63 million when it started missing its mortgage payments in April, according to data firm Trepp.

OK, let's scrape up $9-mill, buy the place, and turn it into the official Gopher Hole Headquarters.
 

short ornery norwegian said:
More than 500,000 square feet of rentable retail space is up for grabs at the 1.1 million-square-foot mall. According to a report by KSTP, bidding started Monday and runs through Wednesday.

The auction does not include J.C. Penney, Macy's and the empty Sears, which own their spaces.

The online Ten-X listing shows as of Tuesday morning the latest bid was $8 million.

The Tennessee real estate investment trust CBL Properties, which owns Burnsville Center, announced during the summer it would cooperate with foreclosure proceedings after it fell behind on the 43-year-old mall's mortgage.

CBL took out the $83 million loan in 2010 and still owed about $63 million when it started missing its mortgage payments in April, according to data firm Trepp.

OK, let's scrape up $9-mill, buy the place, and turn it into the official Gopher Hole Headquarters.
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When they took out the $83 million loan, they could have spent a couple hundred thousand updating the carpet or something.

I was in that mall about a year ago and was shocked at how it appeared to be decorated in a early 1990's style.
 

Face The Facts said:
When they took out the $83 million loan, they could have spent a couple hundred thousand updating the carpet or something.

I was in that mall about a year ago and was shocked at how it appeared to be decorated in a early 1990's style.
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Always found it sort of odd that mall doesn't do better. I have relatives in Burnsville, and 42 is always loaded with cars. Seems like a good location. But yeah, upkeep always seemed way behind other malls. Plus the layout is kind of screwy. Haven't been there in years though.
 


Dakota county people can just as well go to the Mega Mall, right up 77/Cedar (which is a freeway down there from 35E).
 

short ornery norwegian said:
More than 500,000 square feet of rentable retail space is up for grabs at the 1.1 million-square-foot mall. According to a report by KSTP, bidding started Monday and runs through Wednesday.

The auction does not include J.C. Penney, Macy's and the empty Sears, which own their spaces.

The online Ten-X listing shows as of Tuesday morning the latest bid was $8 million.

The Tennessee real estate investment trust CBL Properties, which owns Burnsville Center, announced during the summer it would cooperate with foreclosure proceedings after it fell behind on the 43-year-old mall's mortgage.

CBL took out the $83 million loan in 2010 and still owed about $63 million when it started missing its mortgage payments in April, according to data firm Trepp.

OK, let's scrape up $9-mill, buy the place, and turn it into the official Gopher Hole Headquarters.
Click to expand...
Someone's going to make a killing on this deal.
 


Face The Facts said:
What are you going to do with a big $8,000,000 building no one wants to frequent?
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$8 million seems like a steal -- I imagine the price will go up from there. Based on the mortgage, the property was at least valued at over $80 million in 2010. Heck, the land alone is probably worth more than $8 million. Covid market + bad management + foreclosure auction = a steal.
 



Nokomis said:
$8 million seems like a steal -- I imagine the price will go up from there. Based on the mortgage, the property was at least valued at over $80 million in 2010. Heck, the land alone is probably worth more than $8 million. Covid market + bad management + foreclosure auction = a steal.
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CBL took out an $80 million dollar loan, but CBL has many malls across the U.S.
I don't think this was based on the value of a broken down, non-renovated mall.

The bid will go up, but I really don't know how much a big building like that is worth with the forecast of retail shopping dying.

Maybe a Lifetime Fitness buys it. Something like that would possibly make sense... (if Lifetime didn't have their own COVID-related battles).
 



Face The Facts said:
CBL took out an $80 million dollar loan, but CBL has many malls across the U.S.
I don't think this was based on the value of a broken down, non-renovated mall.

The bid will go up, but I really don't know how much a big building like that is worth with the forecast of retail shopping dying.

Maybe a Lifetime Fitness buys it. Something like that would possibly make sense... (if Lifetime didn't have their own COVID-related battles).
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The $80 million is just on the mall. CBL purchased the property for $81 million in 1998.
 



Ope3 said:
The Eagan Outlet Mall is even closer & newer.
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Yep. And both it and the Mega Mall are connected to the Red Line rapid bus that goes down to Apple Valley.
 

Face The Facts said:
CBL took out an $80 million dollar loan, but CBL has many malls across the U.S.
I don't think this was based on the value of a broken down, non-renovated mall.

The bid will go up, but I really don't know how much a big building like that is worth with the forecast of retail shopping dying.

Maybe a Lifetime Fitness buys it. Something like that would possibly make sense... (if Lifetime didn't have their own COVID-related battles).
Click to expand...
As you probably know, Lifetime did a huge development in Southdale.

But that whole thing fit in an old JC Penny's (I think, or something like that). They certainly don't need an entire mall building.
 

MplsGopher said:
As you probably know, Lifetime did a huge development in Southdale.

But that whole thing fit in an old JC Penny's (I think, or something like that). They certainly don't need an entire mall building.
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Yeh, that's why I thought of it.
They could buy the whole thing, build out their own space, then sell the remainder.

But what else are you going to use old malls for?
Less than ideal for residential living.

You could prototype some sort of micro-city where you have part retail, apartments, and healthclub space all in one building. In theory one could live there year round without breathing any outside air if you set it up right.
 

Face The Facts said:
Yeh, that's why I thought of it.
They could buy the whole thing, build out their own space, then sell the remainder.

But what else are you going to use old malls for?
Less than ideal for residential living.

You could prototype some sort of micro-city where you have part retail, apartments, and healthclub space all in one building. In theory one could live there year round without breathing any outside air if you set it up right.
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Actually, that is precisely the long-term vision for the Southdale development. But they're building (or going to build, can't recall) a new, separate tower for the living and work space (which will be like "hotelling" space). Granted, Southdale itself wasn't for sale.

I suppose what you say about buying it, then selling off the rest is true.
 

MplsGopher said:
Yep. And both it and the Mega Mall are connected to the Red Line rapid bus that goes down to Apple Valley.
Click to expand...

I live in AV, so both Burnsville & Eagan, are about the same less than 10 minutes. MoA is thus about 20. Just thinking it over in my head the past 2 years which would include Xmas shopping, I would guess I have frequented the Malls:

Eagan: 12-15 times
Burnsville: 6 (all to Dick's Sporting Goods except once)
MoA: 2

Hopefully DSG sticks around, seems pretty busy whenever I am there.

Still, I will miss Burnsville Center. As a kid from Northfield, growing up in the 80s, if you told anyone you were going to "the city", that actually usually meant you were going to Burnsville Center (they had a multi-screen movie theater for cripes sake) and Target.
 

As a teenager, Burnvsille Mall was the big mall.

The plan for Southdale makes a lot of sense.
Lot of 3-4 story apartment buildings popping up around there. Desirable place to live with a lot of amenities nearby.
 

Face The Facts said:
As a teenager, Burnvsille Mall was the big mall.

The plan for Southdale makes a lot of sense.
Lot of 3-4 story apartment buildings popping up around there. Desirable place to live with a lot of amenities nearby.
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I still can't believe how awesome Southdale used to look compared to what it does today. The mid century modern look has been transformed into something that looks like every other mall in any other town.
 

Ope3 said:
I live in AV, so both Burnsville & Eagan, are about the same less than 10 minutes. MoA is thus about 20. Just thinking it over in my head the past 2 years which would include Xmas shopping, I would guess I have frequented the Malls:

Eagan: 12-15 times
Burnsville: 6 (all to Dick's Sporting Goods except once)
MoA: 2

Hopefully DSG sticks around, seems pretty busy whenever I am there.

Still, I will miss Burnsville Center. As a kid from Northfield, growing up in the 80s, if you told anyone you were going to "the city", that actually usually meant you were going to Burnsville Center (they had a multi-screen movie theater for cripes sake) and Target.
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Is it connected physically to the Burnsville Center?

Regardless, there's the big one ("The big Dick") up by 494 & 35W.
 

tikited said:
I still can't believe how awesome Southdale used to look compared to what it does today. The mid century modern look has been transformed into something that looks like every other mall in any other town.
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Uniqueness can be good ... and it can be bad.

It's never always good.
 

MplsGopher said:
Is it connected physically to the Burnsville Center?

Regardless, there's the big one ("The big Dick") up by 494 & 35W.
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Yes, the Burnsville DSG is connected. It is on the top floor of what used to be Donaldson's/Carson Pirie Scott/Mervyn's anchor, the northside facing Cty 42/Target.
 

Ope3 said:
Yes, the Burnsville DSG is connected. It is on the top floor of what used to be Donaldson's/Carson Pirie Scott/Mervyn's anchor, the northside facing Cty 42/Target.
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Carson Pirie Scott > Mervyn's
 

Back in 1980, I worked for a time at the Audio King that was located in a strip mall across from the Burnsville Center. I was the world's worst stereo salesperson. After a few months, they informed me that my presence was no longer needed. I was commuting from my apartment that was off the corner of Portland and Lake in Mpls, so I didn't miss that drive every day.
 

tikited said:
I still can't believe how awesome Southdale used to look compared to what it does today. The mid century modern look has been transformed into something that looks like every other mall in any other town.
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I only shop the Galleria. I’m special.
 

Burnsville mall (well, the half that was for sale) reportedly sold for $17.1 million.

I was recently in there to walk around and it's a vacant wasteland.
Carpet is beaten down. It has to be 25 years old.

Curious what becomes of it.
 

Face The Facts said:
Burnsville mall (well, the half that was for sale) reportedly sold for $17.1 million.

I was recently in there to walk around and it's a vacant wasteland.
Carpet is beaten down. It has to be 25 years old.

Curious what becomes of it.
Click to expand...

I fell into a youtube hole a year or so ago. It was all about vacant/deserted malls. Pretty interesting what all of the "new plans" were that never came to fruition.
 

tikited said:
I fell into a youtube hole a year or so ago. It was all about vacant/deserted malls. Pretty interesting what all of the "new plans" were that never came to fruition.
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Seems like the trend now is away from malls and towards "entertainment & shopping districts" like West End in St. Louis Park.
 

Personally, I think "Strip Malls" should have a strip joint in them - or otherwise it's false advertising.
 

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