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Auction of Burnsville Center 2020Random photos by the Burnsville Historical Society during the first week of the auction October 2020.
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Burnsville Center to be auctionedOctober 27, 2020 - KSTP screenshot - KSTP news reports on the auction of the Burnsville Center.

Joe Mazan Reporter:

Half of the troubled Burnsville Center is up on the auction block.

Bids opened at $7 million Monday for more than 500,000 square feet of space in the long-time mall. Stores like Macy's and JC Penny's are not part of the auction.

CBI Properties put half of the mall on the block as part foreclosure proceedings.

Public weighs in on future of Burnsville Center
Half of Burnsville Center goes up for auction
KSTP

The city of Burnsville has been working to redevelop the mall, hoping to turn it from stores into a mixed use including a hotel, residential and office space.

"We are certainly hoping that someone will purchase the property and do great things with it," Regina Dean, Burnsville Assistant Community Development Director said. "We really wanted to have a vision in place so that when a developer or a series of developers are ready to do something different that we're ready to go that we make this property shovel ready."

The auction runs through Wednesday.
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Burnsville Center to be auctionedOctober 27, 2020 - KSTP screenshot - KSTP news reports on the auction of the Burnsville Center.

Joe Mazan Reporter:

Half of the troubled Burnsville Center is up on the auction block.

Bids opened at $7 million Monday for more than 500,000 square feet of space in the long-time mall. Stores like Macy's and JC Penny's are not part of the auction.

CBI Properties put half of the mall on the block as part foreclosure proceedings.

Public weighs in on future of Burnsville Center
Half of Burnsville Center goes up for auction
KSTP

The city of Burnsville has been working to redevelop the mall, hoping to turn it from stores into a mixed use including a hotel, residential and office space.

"We are certainly hoping that someone will purchase the property and do great things with it," Regina Dean, Burnsville Assistant Community Development Director said. "We really wanted to have a vision in place so that when a developer or a series of developers are ready to do something different that we're ready to go that we make this property shovel ready."

The auction runs through Wednesday.
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Auction of Burnsville Center 2020Random photos by the Burnsville Historical Society during the first week of the auction October 2020.
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Auction of Burnsville Center 2020Random photos by the Burnsville Historical Society during the first week of the auction October 2020.
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Auction of Burnsville Center 2020Random photos by the Burnsville Historical Society during the first week of the auction October 2020.
auction_b_center.pdf
Burnsville Center to be auctionedBurnsville Center will go into foreclosure after closures, other effects of pandemic
A spokeswoman said shoppers won't see immediate changes.
By Nicole Norfleet Star Tribune
August 14, 2020 — 9:50am



The Tennessee real estate investment trust that owns Burnsville Center said it would cooperate with foreclosure proceedings for the suburban mall and three of its other shopping centers.

CBL Properties said in public financial filings earlier this year that Burnsville Center had experienced a decline in income due to store closures and rent reductions.

According to second-quarter results released last week, CBL Properties’ overall same-center net operating income declined 32% for the three months ended June 30.

“Our financial and operating results for the second quarter reflect the temporary closure of the CBL portfolio for a significant period due to government mandates,” said Stephen Lebovitz, CBL Properties chief executive, in a statement. “Revenues for the quarter were impacted by a major increase in the estimate for uncollectible revenue related to rents due from tenants that recently filed for bankruptcy or are struggling financially, as well as amounts that were abated as part of negotiations. Store closures and rent loss from prior tenant bankruptcies and lower percentage rent related to lower retail sales also impacted revenue.”

CBL Properties has been working with tenants to address rent-deferral requests and collected a little more than 54% of the overall rent due by tenants from April through July.

Earlier this year, CBL Properties had been in talks with lenders to try to modify the loans of several of its malls, including Burnsville Center. At the same time, the company had cut expenses by furloughing about 300 employees, or 60% of its workforce, reducing pay for executives and other staff and other cost deferrals.

According to data firm Trepp, CBL owed about $63 million on the loan and had started missing its mortgage payments in April.

Last week, the company announced that after discussions with lenders it anticipated cooperating with foreclosure or conveyance proceedings for Burnsville Center, the Park Plaza in Little Rock, Ark., Hickory Point in Forsyth, Ill., and EastGate Mall in Cincinnati.

CBL Properties spokeswoman Stacey Keating confirmed the Burnsville Center’s pending foreclosure, but she said shoppers wouldn’t see an immediate change at the center.

“Customers can continue to expect business as usual at Burnsville Center,” she said in an e-mail.

Many malls throughout the country have suffered during the coronavirus pandemic that forced stores to temporarily close for months with some tenants unable to pay their rents due to the drop in sales. The owners of the Mall of America have fallen three months behind on paying the megamall’s mortgage.
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Half of Burnsville Center on auction block 2020Burnsville Eagan Sun/Thisweek News online: by John Gessner Oct 19, 2020

Part of Burnsville Center will go up for auction Oct. 26.

Starting bid is $7 million

Half of the troubled Burnsville Center will go on the auction block Oct. 26.

The starting bid will be $7 million for the 522,088 square feet that were owned by Tennessee-based CBL Properties, the mall’s longtime part-owner and manager.

The outstanding debt is $64.2 million, according to Ten-X Commercial, which will conduct the online auction Oct. 26-28.

Attempts by CBL to restructure its debt failed, and a special servicer holding it “is looking to sell the existing note as soon as possible,” said Burnsville Mayor Elizabeth Kautz, who has been in touch with CBL officials.

CBL says it’s out of the picture now, according to Kautz. New York-based Spinoso Real Estate Group is managing and leasing the mall and has hired some CBL employees, she said.

The portions of the 1.1 million-square-foot regional mall owned by Seritage Growth Properties (the vacant Sears space), Macy’s and J.C. Penney are not part of the auction.

For the city, years of work to support redevelopment of the mall and surrounding retail area north and south of County Road 42 will continue, Kautz said.

“Whoever’s going to purchase will know when they do their due diligence that this site is targeted for redevelopment,” the mayor said. “The regulatory tools have already been adopted and approved, and the economic tools have already been put together. And the last piece of that toolbox is the tax-increment financing.”

The city will make a third attempt next year at asking state lawmakers for special legislation allowing TIF authority to raise funds for street and infrastructure projects and development incentives for Center Village. The area isn’t blighted, which would qualify it for TIF under state law, but is harmed by changing shopping habits, officials say.

“We’ll get there,” Kautz said. “I don’t give up.”

CBL announced in August it would cooperate with foreclosure proceedings for Burnsville Center and three malls it owns in Arkansas, Illinois and Ohio.

Two weeks later the company announced a debt restructuring and pending bankruptcy filing that would allow it to continue operating all its properties.

The auction is another “pivot on the road,” Kautz said.

In addition to tenant spaces and common areas, the portion for sale includes four outlots occupied by five tenants, including Jared Galleria of Jewelry and Verizon Wireless, according to Ten-X Commercial’s auction notice. Dick’s Sporting Goods, one of the mall’s anchor tenants, is also part of the former CBL property.

The mall is 87% occupied, according to the auction notice. It was built in 1977.

The notice alerts would-be bidders that the mall is part of a “redevelopment zone” slated to change from “purely commercial to mixed uses, which would include hotel, office, multifamily, education and medical uses.”
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Burnsville Center to be auctionedJoe Mazan Reporter: KSTP NEWS report - screenshot.

Half of the troubled Burnsville Center is up on the auction block.

Bids opened at $7 million Monday for more than 500,000 square feet of space in the long-time mall. Stores like Macy's and JC Penny's are not part of the auction.

CBI Properties put half of the mall on the block as part foreclosure proceedings.

Public weighs in on future of Burnsville Center
Half of Burnsville Center goes up for auction
KSTP

The city of Burnsville has been working to redevelop the mall, hoping to turn it from stores into a mixed use including a hotel, residential and office space.

"We are certainly hoping that someone will purchase the property and do great things with it," Regina Dean, Burnsville Assistant Community Development Director said. "We really wanted to have a vision in place so that when a developer or a series of developers are ready to do something different that we're ready to go that we make this property shovel ready."

The auction runs through Wednesday.
     
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