Remember meForgot password?
    Log in with Twitter

article imageAn entire mall sells for $100 at auction

By Owen Weldon     Jan 19, 2017 in Business
Pittsburgh - The Galleria at Pittsburgh Mills Mall was once valued at $190 million, but earlier in the week it sold for $100 at an auction.
The mall opened in 2005 and it was foreclosed 10 years later after owing Wells Fargo Bank over $150 million. Dinsmore & Shohl LLP, the law firm acting on behalf of the bank, purchased the property. Essentially, Wells Fargo purchased the mall from itself.
Wells Fargo purchased the mall in a legal maneuver that will allow it to rehabilitate the property. However, the bank can still sell it off, but on its own terms.
JC Penny and Macy's serve as the anchors at the mall. There are also a number of other shops and a movie theater. The mall is 1.1 million-square feet.
Anthony Stephens, the general manager of the mall, said operations at the property are expected to continue and remain the same following the transaction. He said the mall was open and is ready for business.
The mall is one of the largest ones in the state. Within 10 years, the property's worth dropped by about $11 million.
Tom Fink, senior vice president at Trepp LLC, a market research firm, said there weren't enough customers going to the mall to support the retailers that operated there. He added that many retailers closed. He said that whoever buys the mall will need to invest a lot of money and change how the site is used.
More about Auction, Mall, Pittsburgh mall
More news from