LITTLE ROCK, Ark. — Park Plaza mall has been sold to Deutsche Bank Trust Co. Americas for $100,000.
The bank gained control of the Park Plaza Mall property in Little Rock after an auction Thursday at the Pulaski County Courthouse.
In March, the bank, acting as trustee for Registered Holders of Wells Fargo Commercial Mortgage Securities, filed the foreclosure suit in Pulaski County Circuit Court, Arkansas Business says, saying the mall defaulted on a loan after missing a payment last year.
The $99 million was a loan issued to the Park Plaza's owner back in 2011. The mall still owed a large chunk of that money and the 10-day period the business had to pay it ended, causing the foreclosure.
The bank was the only bidder at Thursday's three-minute auction, offering the $100,000 minimum bid through another entity called RSS WFRBS2011-C3-AR PPM LLC, according to Arkansas Business.
Now, Deutsche Bank has the freedom moving forward to decide what to do with the debt that's left – $86.2 million.
"This was, you know, this was a legal maneuver to be able to gain control of the future of that property," Jay Chesshir, CEO of the Little Rock Regional Chamber of Commerce, said. "Even though you are the holder of the debt, you don't necessarily control it until you control it, now they do."
As for what's next for the Mall, that's still up in the air. For those attending today's auction, they hope it stays as it is now – as the Park Plaza Mall.
"Not only is it history, but it's a destination point for us, especially when people are out and about," Terri Hollingsworth, Pulaski County Clerk, said. "So we definitely want people to have that asset for the community and remain in the community."
Chesshir says that shouldn't be a worry – it will probably stay as a mall. And he says this could mean better things are coming.
"What it means for all of us from a Little Rock and a Central Arkansas perspective is there's so much interest in that level of development, of that property in that location, that they're willing to do this," he said. "As opposed to a fire sale, which none of us wanted."
Dillard's owns its stores, so its property is not part of the foreclosure. Dillard's could not be reached for comment.