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Cutler Bay’s troubled Southland Mall has been seized by Wells Fargo Bank, representing a commercial mortgage-backed securities trust, as the result of a foreclosure auction on Feb. 10, according to reports in the South Florida Business Journal and real estate publications.
Southland Mall Properties is co-owned by Investcorp and Gumberg Asset Management Corp. The mall had been having difficulties even before the pandemic added to its financial woes.
The $68.7 million foreclosure judgment was based on $65.2 million in principal, plus interest. No other parties offered to bid higher than the lender’s $2,600 credit bid for the 976,889-square-foot mall.
Sears had closed its store there. Kmart vacated the mall in 2019. JCPenney, its largest tenant, underwent Chapter 11 reorganization last December. The second-largest tenant, Regal Cinemas, has reopened, and T.J.Maxx, LA Fitness, Macy’s, DSW, Five Below and Old Navy remain, among many others. Some anchor stores own part of the property, which may prohibit any rapid development changes, and Cutler Bay’s zoning regulations for the area also may affect any development plans.
Cutler Bay’s town officials could not be reached for comment before deadline.
