The ownership of Southlake Mall in Hobart remains in question. Our partners at The Times of Northwest Indiana report an auction for the largest enclosed shopping mall in northwest Indiana has been delayed until May 27.
The auction was supposed to take place Thursday morning. A spokesperson for Chicago-based commercial real estate firm Cushman & Wakefield declined to comment to the publication on why the delay was announced.
According to The Times, Korea-based Southlake 1st Co. Ltd. is looking to sell $50 million in debt that is in default on the mall. The $50 million is a junior loan that is subordinate to a $95 million senior loan that is also in default.
The entity that buys the $50 million debt would own the mall under the condition that it pays off the $95 million senior debt, according to the publication.
In February, California-based Pacific Retail Partners and Golden East Investors in New York were appointed to oversee operation of Southlake Mall, which remains 96% occupied, according to Cushman & Wakefield.
You can read the full story from The Times of Northwest Indiana by clicking here.