Mayor to update community on status of Muncie Mall
An assistant is calling it 'great news'
MUNCIE — Mayor Dan Ridenour will speak about the upcoming public auction of the Muncie Mall during his Community Update on Tuesday, spokesperson Michele Owen said.
The mayor’s weekly updates are live-streamed on the city’s Facebook page every Tuesday and Friday around 8:30 a.m.
It apparently won’t be bad news, such as an announcement that the mall will be closing.
In fact, Shareen Wagley, the mayor’s executive assistant, called it “great news.”
“He’s very happy that there is movement on the mall,” Wagley said in an email. “Tenants have wanted to locate there and not getting response for quite awhile.”
In its latest quarterly report filed in a Delaware County court, Woodmont Co., the Fort Worth, Texas, receiver serving as custodian/manager of the struggling regional shopping center, identified multiple tenants who could move in.
The prospects include the Gabe’s discount chain; Burlington, a national off-price department store; Sky Zone Trampoline Park; Malibu Jack’s indoor fun park; Dunham’s sporting goods; Kohl’s Department Store; Crunch Fitness club; Ross; Daily Thread affordable fashions; and Jo-Ann crafts and fabrics.
The receiver reported that 58% of the mall already was leased.
The mall has lost anchors JCPenney, Sears, Macy’s and Carson’s, but still had many other tenants in the past year, including Zales Jewelers; Louie's Tux Shop; Shoe Department; Journeys; The Children's Place; Finish Line; American Eagle; Aeropostale; Rue 21; MCL cafeteria; Auntie Anne's; Books-A-Million; Country Charm; Bath & Body Works, and Buyer’s Market discount store, the receiver reported.
“On Dec. 25th the sprinkler line burst in (the) former Carson’s dock and interior space, as well as the former JCPenney’s space that Buyer’s Market is renting,” the receiver reported. “Repairs were made to the sprinkler line that day and Buyer’s Market was contacted to coordinate the cleanup of their space.”
The mall is scheduled to be sold to the highest bidder at a sheriff’s sale on May 10.
Delaware Circuit Court 5 Judge Thomas Cannon Jr. approved the public auction to compensate Wells Fargo Bank, which obtained a $32.2 million judgment against the mall.
The bank filed a complaint for judgment and foreclosure of commercial mortgage in 2020 after the mall defaulted on a loan and advised it would no longer cover operational shortfalls or make further debt payments.
One-time mall owner Washington Prime Group (WPG), a real-estate investment trust, transferred the mall’s $33.1-million mortgage to a special servicer in 2020, when the receiver was appointed to manage and lease the facility.
The following year, Columbus, Ohio-based WPG filed for chapter 11 reorganization bankruptcy, citing “a resurgence of Covid-19 during fall 2020 and winter 2021 and the shift of consumer behavior from shopping in brick-and-mortar retail stores to online channels.”
Muncie Mall was built in 1970 on a 53-acre site.
WPG, a shopping center real estate investment trust, was spun off by Simon Property Group in 2014, when WPG borrowed $37 million to acquire the Muncie Mall.
Previously in Greater Muncie: