Pittsburgh Mills Mall Sold For $100 At Foreclosure Auction

TARENTUM (KDKA/AP) – A Pittsburgh-area mall that was foreclosed on after its owners failed to repay $143 million was auctioned off Wednesday for $100.

The sprawling Galleria at Pittsburgh Mills mall has been in trouble ever since it opened its doors 11 years ago. After defaulting on that $143 million loan, the bankruptcy court put it up for auction.

Wells Fargo Bank was owed the money from a 2006 loan and submitted the winning bid for the 1.1 million-square-foot mall. The bank was acting as trustee for MSCI 2007 HQ11, the trust that bought the mall in suburban Frazer Township.

Wells Fargo foreclosed last year on the mall, which opened in 2005. Pittsburgh Mills Limited Partnership defaulted on the loan.

KDKA’s Paul Martino: “You’re protecting the interests of the bank, right?”

Wells Fargo Attorney Nick Godfrey: “That’s correct, yeah. And the process here will play out. Like I said, I can’t comment further at this time.”

It’s clear that Wells Fargo purchased the property to make sure someone else didn’t grab it at a ridiculous price. But it’s not clear what will happen to the mall now, and that’s got shoppers worried.

“It’s a shame. It’s a nice location. It’s a modern mall. It’s nice. I just don’t understand why the customers don’t come here and shop,” said one shopper.

That’s one of the big problems. The mall sits on more than a million square feet, but not many shoppers are coming.

The other problem is that mall shopping is declining everywhere due to the popularity of online shopping. It means the mall’s former Sears Superstore now sits empty. Many others across the country have closed, too. Macy’s stores are also closing, but so far the one at the Mills is staying.

“It’s very sad. They never developed all the stuff they said was going to happen,” said another shopper.

Plans for an indoor go kart track and a water park never materialized, and the mall is only about 55 percent occupied. Even so, shoppers who live in the area hope someone can save the place.

“It’s just getting people to invest in the right things, in the right time. Hopefully, we can get people to come and help us out,” another shopper said.

But the numbers are not good. The mall was once valued at $190 million, but today its worth just $11 million and there’s that $143 million debt.

Wells Fargo and the mall’s new owners haven’t commented on the purchase.

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Comments

One Comment

  1. You can’t give it away.. haha

  2. Big surprise! People haven’t had any appreciable disposable income to shop at malls for years. Thanks, globalists!

  3. Jack Inmanz says:

    There, dear Well Fargo customers, is where all your money went.

    1. No, $185 million went to the feds in FINES for the fake bank accounts. (5300 employees were fired for it too.)

  4. James Benoit says:

    Nice folks have Amazon, etc. They don’t want to be subjected to out-of-control “teen” savages, having gang fights breaking out at the food court, have their nice cars damaged in the parking lot, etc.

    Ban rampaging blacks, business improves. Easy peasy.

  5. This is your hope and change that Hussein was talking about 8 years ago. Don’t tell a liberal, they may need a safe space to contemplate their LBGTXYZ future…

  6. Jim Smith says:

    One hundred dollars? Really? Your lack of understanding of finances and willingness to spread false information is truly amazing. The $100 was an opening bid. The bank was owed, as you reported, $146 million. That’s what the bank paid for it. Not, $100.

  7. Todd Sloan says:

    So, somebody forecloses on it, Wells Fargo owns it, then they sell it to themselves for $100? Am I the only one who thinks this is shady?

    1. Jeff Lucas says:

      Not shady. Wells Fargo foreclosed on it, because they are owed $146 million. They were the only bidder, because it is worth $11 million, but whoever buys it, would buy subject to the $146 million loan. So basically, they bought it for $146,000,100. If you bought it for $200, you would owe Wells Fargo $145,999,800 (not sure how all the fees for foreclosure end up in there). It would be a terrible buy for you. It is still a loss for Wells Fargo, but at least they can try to get some of their money back if its value improves.

      1. Jeff Lucas says:

        And I could be wrong–the loan itself may also be extinguished. But with Wells Fargo taking a $146m haircut, they of course would be a bidder unless the buyer was bidding enough to make it enough of an incentive to write off the rest of the bad debt.

  8. scary. seriously scary that this was swept under the run til the deed was done. the public could of done something with this structure to benefit the locals, not the bankers who’ll turn that 100 dollars into million in their cash grab scam. horrible.

    1. Jeff Lucas says:

      With the “bankers” already $146m into that project, the scam you think exists, does not. If they turned the $100 into $1 million, they still lose $145 million. Wells Fargo bought it for an opportunity to cut their losses. Hardly a scandal.

  9. Ra Williams says:

    Must be in the poor side of town.

  10. Black People seeking self help in the reparations department
    with Affirmative Action local employees joining the grift

  11. Who the hell wants to go to a mall anymore? They’re just a gathering place for freaks and THUGS.

  12. Tallie Jones says:

    seems like bank fraud. this should be investigated immediately.

  13. Mike Arvand says:

    I’d bet money you can guess the demographic of the area. no surprise there why it went out of business. hard to deal with obama voters constantly robbing and protesting.

  14. John Jupiter says:

    shopping ONLINE does not get my car stolen or my life threatened by THUGS…..Malls are for the stupid.

  15. Fred Mertz says:

    Once the blacks move in, the crime starts and that is the end of a mall.

    1. Adam Smith says:

      It is happening everywhere, keep your eye on Century III and Monroeville. Blacks destroy.

  16. So this is where all the fraud money from Wells Fargo goes, investment real-estate holdings. How many scandals do they have recently? Seem to be doing just fine, mighty fine. Speaking of fines, they should have been much, much bigger. Fake accounts anyone?

  17. The loan went away when they foreclosed on it. Of course, there are probably back taxes owed which do have to be paid. Add it maintaining utilities (some of which are probably in arrears) as well as paying employees and repairs and you have a money pit, loss of hundreds of thousands of dollars a month unless they can get it all rented out and get customers back in there. Wells Fargo is probably working with some other development company to try and get it back on a paying basis. As a partner, they may get some of their money back, but it is doubtful. Malls do not have a very bright future in America anymore. Their day has come and gone.

  18. Jack Brooks says:

    Fire whoever approved that loan.

  19. Frank Walker says:

    Give it a week. No more. And Democrats will be blaming Trump for this fiasco.

  20. Ed Cole says:

    but did the buyer assume the debt?

    1. The bank was the buyer. In a foreclosure, the lender will always bid up to the amount of their loan or at least what they perceive the real value of the asset to be. If a bona fide buyer had bid $60 million, the bank might have stopped bidding, take what they got and wrote off the rest. But nobody was willing to bid $100

  21. That wasn’t a sale. It was a bookkeeping entry. It would have been a sale if some guy off the street showed up and left with a new hundred dollar mall.

  22. It has lots of empty space? Turn it into housing. Make a combined residental/commerical center. This would immediately provide customers, and require businesses like grocery stores, etc. You may send me the consulting check.

  23. Ben Hyden says:

    Pittsburgh crime rate is frightening, compared to the rest of the nation and the rest of Pennsylvania.

    The murder rate is 18.6/100K. The national average is 4.9/100K. Violent crime is 706/100K compared to 373/100K.

    Total crime is 3,931/100K versus 2,860/100K for the rest of Pennsylvania. [**]

    Let’s face it; criminals go where the money is, and people going to shop have cars, and wallets, and money. Why become a target of a crime if you can avoid it? Why go to a mall when you can get what you want on the interwebs and have it delivered to your door?

    [**] All of this according to AreaVibes.

  24. Whay did continued development plans not go forward? Was it in an area were shoppers did not feel safe? Who was building new malls 11 years ago? It is sadly true that with all of the publicised trouble at malls, it becomes less and less important to get in the car and search for the products sold in the mall. At one time, having all of your favorite stores together in one place was extremely convenient. Not so much today. Stay at home, in your pajamas, with your coffee in one hand while ordering all of your necessities with the other. Malls may not be completely gone from the American landscape, however, I do bleieve that the original allure that made them such a worldwide success, has now passed. Today’s technology could never have been forseen by those who planned these mega-malls.

  25. “Price” was not the issue. As a secured lender, Wells Fargo has an obligation to protect the asset. They may never get their money back, but an owner without assets or experience could turn the mall into rubble in a short time, making the ~$40 million asset worthless. The bank can take the time to find a new owner with the experience and insight to turn the place around, or at least keep it from getting worse. It could turn out isaving the mall is hopeless, but at least they can try.

  26. Here’s hoping Wells Fargo loses tens of millions more. Whenever a corrupt bank like Wells Fargo loses, it’s good for America.

  27. Wells Fargo can go pound sand.

  28. Julie Axton says:

    Fake news. The lien holder – Wells Fargo – has to approve the high bid and has right of first refusal. Apparently no one else bid on it. The $100 bid was just the part of the formality of them regaining title to the property. In other words if you bid $120, you wouldn’t have gotten it because they would have kept outbidding you until you got to either the lien amount (loan amount) or the market value. Their call.

    1. Paul Whitlow says:

      I’ve had bank of America out bid me past the lein amount and then past what I thought was market value and then six months later they had it listed for less than my original high bid. This was around the time of the bailout so maybe they were working some other angle with the fed.

  29. Jack Foobar says:

    They didn’t buy anything. The bank took it back. Happens all the time in Primate Hussein’s America. You should be used to it by now.

  30. In 2017, the only chance a mall has of being successful is if Amazon disappears and the mall can keep “””””teens””””” out of it.

  31. LOL… only primates savages go to “malls” anymore… Since the 80’s, malls are where you go to engage in Africa-styled tribal-warfare…
    …They spent $100, but they will probably waste millions to clean that mess up and get rid of all the parasitic social c0ckroaches…

  32. This just proves yet once again why NOBODY in their right mind wants to be around (((them))) !!

    If you live in an area where the Feds have forced AFFH down your city leaders throats, it’s
    time to pack your bags and MOVE !! There is no other deeper depression than to be surrounded by (((them))). Their mere presence is a threat to any society they invade.
    Pure blight only comes in one color. Needless to say it sure isn’t OUR color :)) 14 words™

  33. They said that the mall is worth $11 million in market value today.

    Ha, they’re lucky that mall isn’t in DeToilet (Detroit). That mall would then be worth about $11 bucks. But then again at the rate we’re going today, give it about 10 years and it’ll probably
    be worth $11 dollars right where it’s at right now. Trump said it best in a simple 3 letter word
    when he replied to that boot lip down in Georgia. Sad.

    Anybody with any type of clue knows exactly why it’s not worth going to the mall anymore….

    Those that do know don’t go to the mall anymore. I haven’t been to a mall in over 10 years.
    I avoid any areas where these (((teens))) young and old, are known to congregate (destroy).
    It’s what they do. To expect anything different from such a breed is the definition of insanity…

    That’s precisely what we’re experiencing in America as we speak. Pure Insanity…. Sad…

  34. I visited the Mall of America (Minneapolis MN) a few weeks ago and it was packed. I think the main problem was that this mall was built on bad speculation, relying too much on “build it and they will come”.

  35. Jay Lewis says:

    I have seen this mall and it is enormous. Over a million sq. ft. and all one level, no escalators. Amazing.

  36. Cut off the bus lines to the mall and it will improve. Any mall that lets in feral animals will die. When will you stupid idiots realize that nice families do not want to be terrorized by feral thugs?

  37. Jack Davis says:

    All malls should require minors to be accompanied by their FATHERS. End of crime at malls.

  38. Black teens terrorize shoppers inside malls and their parents rob them outside.

  39. John Oakman says:

    The mall has the TMN problem: TOO MANY NEGROES.

  40. TNB – Typical Knee Grow Behavior !!!

    If you expect anything different from the lolwy knee grow be prepared to wait an awfully long time!

  41. Brian Mcg says:

    Nothing to see here. The plaintiff purchased its own auctioned property at the opening bid. The max bid was probably set to the 143M amount, and this is why no one else bid on the property. This happens every day at foreclosure sales across the country. If a 3rd party bidder had purchased the property at opening bid, this might be a real story.

  42. You can’t have anything nice in our society as long as the lowly knee grow lives in it.

    The mall is just one example of millions of why it’s best to just avoid the groid as much as you
    possibly can in life. They are nothing short of being Satan’s children.

    I find it very amusing that ((they)) want to live in the white man’s world without the white man in it.

    Ahhh, the genetically speaking low IQ boot lips can’t do anything positive for themselves that doesn’t involve fleecing YT for their cash in any way that they can. They are societies’ cancer.
    Black Cancer. Devouring and destroying everything in it’s path. It’s just what they do…

  43. I think this would be a wonderful opportunity to pause for a moment and give thanks for
    the great contributions of the Black community to our society. Their peaceful and
    generous nature makes them ideal neighbors, lending testimony to their exceptional
    family values and parenting skills unrivaled by any other culture. Their commitment to
    academic excellence enriches our schools and serves as an example to all who hope
    to achieve prominence as a people. Real estate values are fueled by the mix of African
    Americans into an area due to their caring and respectful nature of these communities,
    an example of all they have achieved through their enthusiasm for self improvement by
    hard world and a self-reliant can-do nature. And we certainly must not forget their
    abhorrence for crime and their dedication to observing the law. Without their
    industrious and creative drive, we would be much poorer as a nation. Thank you to all
    African Americans for helping make America a great place to call home.

  44. Paul Whitlow says:

    This is an extremely stupid artical. This is how foreclosures work, it’s not like some random person bought a mall for $100. A bank can’t just take property they have to put a lien on it then the county can put it up for auction on the court house steps. Then the bank and whoever else wants to bid can, but of course the bank will bid at least up to the amount owed on the property, no one came to bid against them, so it cost the bank an extra $100 to take possession of the property that they had already invested over one hundred million in. This happens everyday all over the country. Why not just print a story about the sun setting and act like it’s a big deal.

  45. “It’s clear that Wells Fargo purchased the property to make sure someone else didn’t grab it at a ridiculous price.”

    Oh pleeease, don’t give me this baloney about them “bidding” on it and winning at $100 dang dollars. Someone else would have surely paid more than $100, it was obviously a rigged “bidding” process.

  46. Brock Young says:

    This has already been said, but this article is extremely misleading and, in my opinion, could be classified as “fake news”, as the foreclosure system works exactly as it happened here, and the property now belongs to Wells Fargo.

    – Well Fargo was owed $143 million
    – Wells Fargo went through the legal foreclosure process
    – At time of auction, Wells Fargo would have had a specific number as the MINIMUM price, up to $143 Million, plus all costs. We do not know that amount, but the other potential bidders (if any) who were wanting to bid would have, out of courtesy, asked WF for their minimum amount they would want.
    – If no bidder wanted it for the MINIMUM, then no bid would have been given
    – The note holder (WF) gave a bid of $100 as a formality, as required by the process to have the property officially auctioned off so that the property could then belong to them. There must be a bid, or the auction must be postponed and tried again later.
    – WF now owns the property for the cost of $143 million, plus expenses.
    – WF can now do what they want with the property, and could possibly even sell it for more than what they lost on the loan. Either way, WF would have determined what they believe the property to be worth on the regular market and determined taking possession of it, rather than accept a smaller bid was in their best financial interest.

    Standard procedure with every auctioned foreclosure.

  47. Negros destroyed another mall I see. Happens all over the country. They are a cancerous plague. Death and destruction is what they do.

    1. That’s why God made them color coded so YT knows who to avoid at all costs. Avoid the GROID !! They are not your friends. They destroy EVERYTHING they touch. Turning it black and worthless, just like them.

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