Wells Fargo requests foreclosure on Rapid City mall
RAPID CITY (AP) -- Wells Fargo Bank is seeking to foreclose on a Rapid City mall to speed up the shopping center's payment of $100 million in unpaid loans.
RAPID CITY (AP) - Wells Fargo Bank is seeking to foreclose on a Rapid City mall to speed up the shopping center's payment of $100 million in unpaid loans.
The bank filed its request last week for a judge to foreclose on Rushmore Mall, the Rapid City Journal reported.
A court filing shows the mall's owner SM Rushmore Mall LLC defaulted on its payments in May. The 13-acre (5-hectare) property incorporating the mall and adjacent real estate will now go into receivership.
The sprawling mall has been a shopping hub for western South Dakota since opening in 1979, but it has struggled in the last decade with the loss of some tenants. Rushmore Mall lost its anchor tenants Herberger's and Sears last year. Restaurant chain Fuddruckers also joined the department stores in leaving the shopping mall.
If Judge Jane Wipf Pfeifle of the 7th Circuit approves the foreclosure request, Wells Fargo will collect rent from the mall's more than 100 listed tenants until a new owner is found. The bank took over the property's mortgage in 2014 when the mall refinanced its loans with U.S. Bank, according to legal filings.
Attorneys for Wells Fargo and SM Rushmore declined the newspaper's request for comment.
The mall will continue operating as usual and customers shouldn't expect to notice any differences, said Kimberly Green, a spokeswoman for Washington Prime Group, SM Rushmore Mall's parent company.
A hearing is scheduled for July 26.