Foreclosure of College Square Mall: What does it mean? - KWWL - Eastern Iowa Breaking News, Weather, Closings

Foreclosure of College Square Mall: What does it mean?

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CEDAR FALLS (KWWL) - Earlier this week, a mortgage firm initiated a foreclosure action against College Square Mall in Cedar Falls.

The mall currently has 18 empty stores.

KWWL has been searching through court documents to figure out what's really going on.

Court documents obtained by KWWL indicate a receiver has been appointed, which is essentially a neutral third party that will collect rent from tenants at stores in the mall.

Documents dealing with the foreclosure petition against the mall were filed in Black Hawk County District Court in Waterloo on Monday, June 23, shortly after 9 a.m.

U.S. Bank, the mall's trustee, is facilitating the foreclosure that's been initiated by Bear Stearns, a mortgage firm.

The petition filed in court states the total payoff amount as of June 1, 2014, is more than $34,000,000, with interest continuing to accrue at more than $9,000 per day.

Marianne Fasano, a spokeswoman for GK Development which owns College Square Mall, refused to answer any questions about the foreclosure and what it means for shoppers.

On Wednesday, however, Fasano told KWWL the mall entered into what she called a "loan restructuring process."

"This is a complex endeavor that is currently ongoing," she said Wednesday. "College Square Mall continues to operate as usual during this process."

On Thursday, Fasano deferred all questions to Stephen Baxter, who is listed online as a Commercial Portfolio Manager at McKinley, Inc., a property management company out of Ann Arbor, Michigan.

Phone calls to Baxter were not returned Thursday afternoon.

The petition was filed by Laurie Dawley, a real estate attorney for the law firm of Shuttleworth and Ingersoll of Cedar Rapids. 

KWWL reached out to Dawley by phone and email on Thursday, but messages were not returned.

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