Wells Fargo, sole bidder, is new owner of Fashion Outlets
Only one offer made for Fashion Outlets, struggling plaza on city’s south side
Wells Fargo was the lone bidder Tuesday for the Fashion Outlets of Santa Fe, the struggling shopping plaza on the southern edge of the city.
At a sale on the steps of the state district courthouse on Montezuma Avenue, the bank bid $10.2 million for the property, 16.5 acres at 8380 Cerrillos Road, with more than 122,000 square feet of retail space. Wells Fargo, which loaned the mall owner $11 million to buy the property, foreclosed on it, and First Judicial District Judge David K. Thomson ordered the sale in February.
Fashion Outlets of Santa Fe LLC, which failed to make payments on its loan, has 30 days after Thomson approves Tuesday’s sale to make a comparable offer for the property, called right of redemption, although it’s not likely to do so.
About half of the 34 outlet mall storefronts are empty. Those that remain include well-known brand names such as Le Creuset, Eddie Bauer, Merrell, Brooks Brothers, Levi’s and Polo Ralph Lauren. Colliers International, an Albuquerque real estate firm appointed the receiver, or property manager, is seeking new tenants, its representatives said at the sale. The receiver has a legal obligation to maximize the value of the property.
“The public perception is that the mall is closing,” said Julie Baldridge, Colliers International director of property management. “Now that the property is under new ownership, there’s excitement, and we are definitely open for business and we are actively seeking new tenants.”
Baldridge said she does not know what the future holds for the property,
but there are no immediate plans to change its use.
An Albuquerque attorney representing Wells Fargo, Spencer L. Edelman, said the bank would not comment on Tuesday’s sale or its plans. Typically, a bank lists a foreclosed property for sale and uses the proceeds to offset the original loan.
Fashion Outlets in January owed $10.3 million, including $267,490 in interest, which accrued at the rate of $2,476.52 per day, said Julia B. Rose, the Santa Fe attorney appointed by Thomson to conduct the sale. Although about a dozen people attended the sale, an unusually large turnout for such an event, none came to bid. The bank’s bid was submitted prior to the sale and no one attended on its behalf.
A handful of employees from Colliers International were present, along with some mall tenants, a lawyer for Fashion Outlets, the on-site property manager and the manager of the Inn at Santa Fe, a hotel adjacent the shopping plaza.
The mall, which was nearly full prior to the Great Recession, opened in 1993 and has changed hands several times.