KPTM FOX 42: Omaha News, Sports and Weather; Nebraska News, Sports; kptm.com | Crossroads Sale Paves the Way for Change
Member Center:
OMAHA (KPTM) — It sits at one of Omaha's busiest intersections. Now Crossroads Mall has a new owner, if only temporarily.
Its lender bought the struggling shopping center Thursday morning after a public auction failed to produce any other bidders.
Just minutes after foreclosed homes went on sale, so too did the decades–old shopping mall at 72nd and Dodge. "The property will be sold today to the highest bidder," announced the auctioneer.
But despite a crowd, the only bid for Crossroads Mall, $40.6 million, came from its lender CWCapital.
It's the same dollar amount as the loan the mall's previous owner, Simon Property Group, defaulted on last year. "It will be business as usual for the folks out there. We wanted to do this in a way that was least disruptive to the shopping center, the tenants and to the public," said attorney Trev Peterson.
For now, stores will stay open and leases aren't affected, but make no mistake, the lender plans to sell the mall. "I've had several conversations and several inquiries about the property and interest in its redevelopment and its recognition as a prime spot in our community, so I think there is still definitely potential to do that and the city is a willing partner," said Omaha City Councilman Pete Festersen.
John Lund of the Lund Company is one of those eyeing the property's prime location. " Sure we will take a look at it, as everyone is looking, but it has to be the right price, you have to have the right plan and you have to have the guts to do it," he said.
Many envision the area no longer as a mall, but a mix of retail, office, residential, and community space, possibly even a hotel. Festersen mentioned the developments at Aksarben Village and Village Pointe. "That location is still a great location. It's just going to take a new developer, a new look, a lot of capital and just a new vision for that property and I'm certain it will happen for Omaha," Lund said.
The Omaha–based Lerner Company will manage Crossroads until a new buyer is found. For tax purposes, the property is assessed at more than $20 million. Though the market is tough right now, some expect the mall to be re–sold within the next six months.
Keep in mind, Target owns its store's property at 72nd and Dodge and was not included in Thursday's sale.
