Shopping Mall Acquired by Federal Agency in California

February 21, 2011 / Elizabeth Buckley, Commercial Property Analyst

A local federal agency has recently acquired a shopping mall $13.1 million, despite the owner’s efforts to prevent the sale. The San Bernardino Economic Development Agency has purchased the shopping mall — Carousel Mall, but the recent owner, Placo San Bernardino has filed a lawsuit against it in February 8, 2011.

Shopping Mall Acquired by Federal Agency in California

Another shopping mall acquisition took place in Florida by private real estate company–Lightstone. The property, Festival Bay Mall, is located at 5250 International Drive in Orlando and leased to major tenants like Cinemark 20 Theatres, Monkey Joe’s, and others.

Placo San Bernardino, an investment company owned the other half of the shopping mall — the central part of the commercial property. The company owed about $16.3 million note from the Central Bank, which the San Bernardino Economic Development Agency purchased and the company failed to pay.

The company filed a lawsuit against the agency and sought to prevent the agency from on selling or foreclosing the shopping mall, as well as seeking damages on the company’s claimed that the agency intentionally drives customers away, which according to the company, has resulted to defaulting on the monthly loam payment.

But, the United States District Court rejected Placo’s appeal to postpone the sale. The agency then acquired the property through an auction in February 14, 2011, and immediately begins as the shopping mall’s new owner and mortgage owner.

The shopping mall, also called as Central City Mall, is mixed use commercial property, a two-storey shopping center in San Bernardino, California. It was established as Central City Mall on October 11, 1972, but it was renamed Carousel Mall because of the addition of a large and colorful carousel, to attract younger customers.

The city’s part of the shopping mall is said to be 33 percent leased, mainly to a charter school and to school and county district offices.

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One Response to “Shopping Mall Acquired by Federal Agency in California”

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