$86.2M Judgment Awarded in Park Plaza Foreclosure

$86.2M Judgment Awarded in Park Plaza Foreclosure
A lone shopper crosses a section of closed shops last October at Park Plaza in Little Rock. (Kerry Prichard)

We told you a few weeks ago that lenders were pushing forward with their foreclosure lawsuit against the owners of Park Plaza Mall in Little Rock.

Pulaski County Circuit Judge Alice Gray awarded an $86.2 million judgment plus interest from July 1 to Deutsche Bank Trust Co. Americas against Park Plaza Mall CMBS LLC of Chattanooga, Tennessee.

Gray also said that if the judgment isn’t paid within 10 days of the order being entered, the plaintiff can sell the 404,617-SF mall at 6000 W. Markham St. to satisfy the judgment.

The order was entered on Sept. 13, making the 10-day deadline last Thursday, the day Whispers went to press. So we’ll keep you posted.

Back in March, the bank, acting as trustee for Registered Holders of Wells Fargo Commercial Mortgage Securities, filed the suit, saying the mall defaulted on a loan after missing a payment last year.

The lawsuit is tied to a loan of $99.4 million originally made to Park Plaza’s owner, CBL Properties of Chattanooga, Tennessee, by Wells Fargo in 2011. The loan is secured by the mall and its 240,843-SF parking deck.

A receiver was appointed for the mall.

In court papers, the bank said that as of July 1 it is owed $86.2 million plus court costs and attorneys’ fees.

The bank is represented by attorneys Charles Coleman and Eric Berger of Wright Lindsey & Jennings LLP of Little Rock.

Gray also awarded $5,000 for attorneys’ fees, expenses and other costs.