ST. CLOUD, Minn. – There is a deadline looming next month for the owners of the Crossroads Center in St. Cloud to pay off an $83 million debt on the property.
Kelly Busche with the Minneapolis-St. Paul Business Journal says the value of the mall property has declined 70 percent over the past decade and is now only valued at $50 million. Last year the mall sold part of the property to Spire Credit Union and used the over $2 million proceeds to make payments on the principal and interest, but that still wasn’t enough to satisfy the creditors.
Busche says, while there is a deadline looming in April, she doesn’t expect the mall to close, and the future is not all doom and gloom.
The mall is still open and operating in St. Cloud. It’s one of the largest outstate retail hubs in Minnesota. And one specific thing they pointed out was there’s been some revitalization at that mall, including the former Sears store which was turned into a space for several tenants which have been successful.
.
Busche says steps will be taken in April to begin the foreclosure process, which may include selling the property for pennies on the dollar, or possibly for Brookfield to find a way to retain the ownership.
Comments