The bank that financed a mortgage at Fashion Square Mall will take over operation of the retail property on Thursday, and intends to keep running it as a mall, according to a bankruptcy attorney for the mall’s current owner.
An agreement to hand the mall over to the lender, The Bancorp of Wilmington, Del., was approved by a judge Monday, said Scott Shuker, attorney for the mall’s company owner Scott Fish.
“They’re going to meet with the employees out there tomorrow. They said in court they would keep it running,” Shuker said.
The mall is about halfway through a 99-year lease on the property, Shuker said, from the original Maguire family that owned large properties in the area. He said the Macy’s store has 40 years remaining on its lease.
Fish’s company, a subsidiary of UP Development, was targeted in a foreclosure in early January by The Bancorp. Fish sued the bank in turn, alleging it had been lying to tenants about the future of the property. Handing the mall back to the bank will resolve the foreclosure and Fish’s countersuit.
The bank has told the court it will hire a management company to run the mall, but it has declined to comment publicly so far.
The bank alleged that UP “grossly mismanaged” the mall, and that UP Development’s operation has accounting problems, besides defaulting on its loan.
Fish has agreed to make a payment, not disclosed publicly, to the bank to settle the dispute. In exchange, the bank is allowing him to move forward on a deal with Trammell Crow next to the mall. Fish’s company will sell the property to Trammell Crow, which intends to develop a $50 million apartment complex called the Alexan at Audubon.
The apartments would border the mall on its northeast side, at the southeast corner of Maguire Boulevard and McCullough Avenue.
There’s no lack of interest in the property around Fashion Square. A South Florida developer, Grover Corlew, just paid $50 million for the adjacent Orlando Central Office Park that includes 21 buildings.
Contact me with a business news tip at pbrinkmann@orlandosentinel.com or 407-420-5660; Twitter is @PaulBrinkmann
Mark Zuckerberg talked to the Associated Press and detailed his thoughts on Feb. 16 in a 5,800-word manifesto on his site. (Feb. 17, 2017)
Mark Zuckerberg talked to the Associated Press and detailed his thoughts on Feb. 16 in a 5,800-word manifesto on his site. (Feb. 17, 2017)
Mark Zuckerberg talked to the Associated Press and detailed his thoughts on Feb. 16 in a 5,800-word manifesto on his site. (Feb. 17, 2017)
Mark Zuckerberg talked to the Associated Press and detailed his thoughts on Feb. 16 in a 5,800-word manifesto on his site. (Feb. 17, 2017)
Matt Englett, an Orlando attorney who has been disciplined twice previously, has been suspended by the Florida Supreme Court for three months.
Matt Englett, an Orlando attorney who has been disciplined twice previously, has been suspended by the Florida Supreme Court for three months.
The House bill that would eliminate Visit Florida and Enterprise Florida would have another result: Getting rid of the urban high crime district program that has been used to avoid millions of dollars in taxes by Universal Orlando.
The House bill that would eliminate Visit Florida and Enterprise Florida would have another result: Getting rid of the urban high crime district program that has been used to avoid millions of dollars in taxes by Universal Orlando.
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A group affiliated with California-based Ilbak Investments purchased the Oviedo Mall, anchored by Regal Cinemas and Sears at State Road 417 and Red Bug Lake Park in Oviedo.
Judges have rejected attempted deals to turn four health insurance companies into two.
Judges have rejected attempted deals to turn four health insurance companies into two.
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