Many thanks to Scot Bathgate who sent this story of the 1.1 million square foot “Galleria” mega mall at Pittsburgh Mills in Pennsylvania that foreclosed after the owners didn’t pay a $143 million dollar (USD) debt. The mall was auctioned off for $100.
Wells Fargo foreclosed last year on the mall, which opened in 2005. The mall once was worth $190 million but recently was appraised at just $11 million and is slightly more than half occupied. Pittsburgh Mills Limited Partnership defaulted on the loan.
When this mall opened in 2005 it was owned by Mills Corporation, a “publicly traded real estate investment trust (REIT) with 18 so-called “landmark” shopping-and-entertainment centers nationwide, as well as three more in the pipeline. “
In advertising this mega mall in 2005 the Mills Corporation stated “Today, with the anchor announcements we make, we offer our consumers what they’ve been telling us they want — the broadest possible variety of value retail and entertainment and full price retail on a single Mills campus.”
This mall was divided into two sections: the 110 acre 1.15 million square foot “Galleria” at Pittsburgh Mills and another collection “big-box” tenants called the Village at Pittsburgh Mills. It included two department stores, restaurants and food courts, and had themed “neighbourhoods” with a “Sportstreet”.
“With this broad array of retail and entertainment offerings in one location, the Pittsburgh Mills campus will be the dominant retail and entertainment offering in the Pittsburgh market.”
From boom to bust in 12 years.