Owners of DeSoto Square mall in Bradenton file for bankruptcy. Foreclosure sale canceled
The foreclosure sale of the DeSoto Square mall property, set for Wednesday, was canceled, after the mall’s owners filed for bankruptcy.
The auction was still scheduled until the 11 a.m. auction time, when the message “canceled per county” was posted on the county clerk’s web site.
The sale was canceled because the mall’s owners filed for bankruptcy in the Eastern District Court of New York, Murray B. Silverstein, of Greenspoon Marder LLP, who represents the lender, said in a text on Wednesday.
“Romspen will be actively involved in the attempted reorganization in the bankruptcy as it is DeSoto Owners’ largest creditor, via its $30 million judgment. If no plan can be approved, including any plan we may wish to propose, then the case will be returned to Manatee for completion of the foreclosure. It’s likely to take a year or more,” Silverstein said.
The owners of the mall, located at 303 301 Blvd. W., purchased the property in April 2017 for $22,850,000 and announced a series of planned improvements, most of which failed to materialize. The mall owners still owed $21,789,102 when lender Romspen U.S. Master Mortgage LP, a Cayman Islands limited partnership, filed to foreclose on the property in 2018.
The owners’ unpaid balance grew to more than $30 million because of mounting interest charges, according to court records.
In the interim, mall owners submitted plans to Manatee County government to demolish most of the mall property and redevelop it over a 10-year period.
Those plans would replace the demolished buildings with 128,514 square-feet of retail-lifestyle space, a 40,000 square-foot grocery, 90,000-square-feet of office space and three retail out parcels totaling 16,250-square feet. Also planned are about 900 residences.
The foreclosure sale order, filed with the Manatee County Clerk of Circuit Court, stated that the property would be sold to the highest bidder for cash.
The mall has fallen on hard times in recent years with JC Penney announcing in June that its was closing its Bradenton store. Other losses include Spencer’s Gifts, Sears, Victoria’s Secret, Charlotte Russe, Payless Shoes and Wet Seal.
Macy’s left DeSoto Square mall in 2014, in favor of opening a store at the Mall at University Town Center. Your Treasure House moved into the former Macy’s space in 2018 but left in December 2019, relocating to Sarasota Square Mall, 8201 S. Tamiami Trail.
New York-based Meyer Lebovitz, the owner of the 678,000-square-foot mall DeSoto Square mall, announced in 2017, plans for a $7 million investment to make the mall a more attractive place to visit, including adding a cinema and new restaurants.
Lebovitz said in the 2017 press release his purpose was very clear: “Make an exciting destination for its surrounding residents to shop, dine and enjoy entertainment. We will be adding new retail stores with canopied entries and new free-standing restaurants.”
Those plans did not work out and today the mall remains half empty, a shell of what it once was.
DeSoto Square mall, built by former San Francisco 49ers owner Eddie DeBartolo, opened in 1973 with JC Penney and Sears as the two original anchors. In 1992, Dillard’s becomes the third major anchor, and in 2003, Burdines opened as fourth anchor. Two years later, Burdine’s became Macy’s.
This story was originally published September 23, 2020 at 11:37 AM.
