A judge has extended the foreclosure sale deadline for Southridge Mall a second time as redevelopment plans of the former Boston Store site at the mall still come into focus. In a 2021 foreclosure judgment related to the 560,000-square-foot mall itself – a parcel that does not include the separately owned JCPenney, Macy’s, and former
A judge has extended the foreclosure sale deadline for Southridge Mall a second time as redevelopment plans of the former Boston Store site at the mall still come into focus.
In a 2021 foreclosure judgment related to the 560,000-square-foot mall itself – a parcel that does not include the separately owned JCPenney, Macy’s, and former Sears and Boston Store properties – receiver Spinoso Real Estate Group had until mid-December 2023 to market the mall property to potential buyers or schedule it for a sheriff’s sale.
Last year, that deadline was extended until December 2024.
On Monday, at the behest of mortgage holder and trustee, Wells Fargo Bank, Milwaukee County Circuit Court Judge William Sosnay agreed to now extend that deadline to June 30, 2025, according to new court documents.
The court order says that the receiver is to market the property for sale on an "as-is, where-is basis," and if a purchase agreement has not been made by the new deadline, Wells Fargo will take the property in a deed-in-lieu of foreclosure agreement or contact the sheriff's office to schedule a sheriff's sale, unless a new agreement is established.
Explaining the need for the extension at a hearing last year, Wells Fargo's attorney David Gold said the uncertainty as to whether the village can come up with a redevelopment plan for the former Boston Store and other parts of the mall makes it hard to effectively market the mall, located 5300 S. 76th St., and could also impact its sale value.
Gold did not respond to request for comment as to why the deadline extension was specifically requested this time.
[caption id="attachment_592041" align="aligncenter" width="1024"] BLVD's proposal for the former Boston Store. Rendering from KTGY[/caption]
Greendale officials have a developer, a development proposal and a TIF district in place to redevelop the former Boston Store, but decades-old covenants on the property — that are still in place — have halted those plans for months.
In June, Milwaukee-based Barrett Lo Visionary Development (BLVD) unveiled renderings and concept plans for up to 675 apartments and 20,000 square feet of retail space to be built in phases at the 15-acre site.
The Boston Store property has been vacant since 2018 and was bought by the village of Greendale in 2021. BLVD has entered into an agreement with the village to tear down the 220,000-square-foot building and redevelop it.
However, restrictions written by past mall owners prohibit the property from being redeveloped into anything but another department store. Those restrictions can’t be altered or lifted without approval from all the property owners at Southridge.
"We are fully committed to moving forward with the development at Southridge Mall," BLVD founder Rick Barrett said in a statement. "The fact is that neighborhood-defining developments like this one take time, and our team is looking forward to getting this development underway for the benefit of the Greendale community."
Barrett did not provide an updated timeline for the project.
[gallery size="full" td_select_gallery_slide="slide" ids="592038,592042,592040"]
Holiday flash sale!
Limited time offer. New subscribers only.
Subscribe to BizTimes Milwaukee and save 40%
Holiday flash sale! Subscribe to BizTimes and save 40%!
