The new Block 37 mall on State Street is officially going up for sale after a long and hard-fought foreclosure battle.
The bank group that now owns the shopping center has hired Eastdil Secured LLC to market the mall. The 280,000 square-foot mall opened in November 2009, a few weeks after the lender group sued to foreclose on the project. Bank of America leads the lender group.
Bank of America gained control after bidding $100 million at a sheriff’s foreclosure sale in March. The bid amount is less than half of the loan’s $206 million balance. No other bids were made for the mall.
The $100 million offer is known as a credit bit. Lenders take back properties in an attempt to satisfy the amount they are owed. These bids can sometimes indicate what lenders think a property is valued at.
Daniel Hyman, president of Millennium Properties R/E Inc., feels the mall should draw strong interest from investors. “There’s obviously going to be interest,” Mr Hyman says. “There are more people downtown with dogs than briefcases. There are people there that would shop.”
A spokeswoman for Bank of America confirms the hiring of Eastdil. The brokerage had been hired by the lender group to market the mortgage late in the foreclosure proceedings.
Benjamin Law Firm – Chicago foreclosure attorney