LAVALE — The Country Club Mall in LaVale is scheduled to be sold at auction next month.
The sale will be conducted by the online commercial auction house Ten-X, formerly Auction.com.
Opened in 1981, the mall is owned by Gumberg Asset Management Corp. of Fort Lauderdale, Florida. Payments on the mall’s commercial note have fallen into arrears with none made since May.
According to Ten-X, a balance of $21.9 million remains on an original note of $26.2 million. The sale does not include property occupied by Walmart.
According to the broker, the winning bidder would be taking over the note, thereby giving them the rights to the property.
Located at 1262 Vocke Road, the mall joins the list of struggling ventures as the brick-and-mortar retail industry continues to face challenges as a result of the coronavirus pandemic. Ten-X statistics show the mall is currently 52.3% rented.
Sears and Bon-Ton are among the previous tenants who have most recently closed their doors. Another, JCPenney, which has been at the mall since it opened, announced in June that it would also close.
The auction is scheduled to take place from Nov. 16-18 with a starting bid of $1.3 million.
According to Ten-X, Newmark Knight Frank of Washington has been retained by ownership to arrange the sale of the mortgage note. The note is secured by a 391,062-square-foot portion of a larger 594,069-square foot-regional mall anchored by Walmart.
The mall is situated on 46.3 acres and its lone anchor tenant is Walmart. Other stores include American Eagle, Bath & Body Works, Country Club Cinemas, Shoe Show, T.J. Maxx and Ulta Beauty.
The borrower for the loan is LaVale Associates II LLC, a bankruptcy remote special purpose entity formed to hold the interest of the collateral.
The loan is non-performing with monthly principal and interest due for the June 1 payment.
Gumberg Asset Management Corp. did not return requests for comment.
Follow staff writer Greg Larry on Twitter @GregLarryCTN.