Park Plaza Mall to Be Auctioned on Courthouse Steps

Park Plaza Mall to Be Auctioned on Courthouse Steps
The second floor inside Park Plaza Mall in Little Rock. The mall is being sold at auction after it defaulted on a loan. (Sarah Bingham)

Park Plaza Mall in Little Rock will be sold on the Pulaski County Courthouse steps on Oct. 28.

The sale for the 404,617-SF mall at 6000 W. Markham St. and a vacant parking lot is to satisfy an $86.2 million judgment awarded to Deutsche Bank Trust Co. Americas against Park Plaza Mall CMBS LLC of Chattanooga, Tennessee. 

In March, the bank, acting as trustee for Registered Holders of Wells Fargo Commercial Mortgage Securities, filed the foreclosure suit in Pulaski County Circuit Court, 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The lawsuit is tied to a loan of $99.4 million originally made to Park Plaza’s owner, CBL Properties of Chattanooga, Tennessee, by Wells Fargo in 2011.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.

In court papers, the bank said that as of July 1 it is owed $86.2 million plus court costs and attorneys’ fees. The order for the foreclosure was entered on Sept. 13 and Park Plaza had 10 days to pay the judgment. 

Last month, the Deutsche Bank assigned the judgment to an entity called RSS WFRBS2011-C3-AR PPM LLC. That’s not unusual in a foreclosure for the judgment to be assigned to an entity. That entity then will bid for the property at the foreclosure sale. 

Typically, the owner of the judgment doesn’t want to take title to the property in its name. Instead it creates a new entity, usually a special purpose one that is produced solely for the purpose of owning the property. 

The public auction will be held at noon.