The owners of the Turnpike Mall in Augusta, which went up for sale last fall after it couldn’t pay its bills, have found a buyer.
Trustee Wells Fargo, receiver Boulos Property Management and the mall, officially known as the Taurus Augusta Mall, filed documents with the U.S. District Court in Maine on March 25 for approval to sell the property.
The attached purchase-and-sale agreement, signed in January but amended on Feb. 25, said Sun Equity Partners, a New York real estate investment and development firm, will pay $3.2 million for the property if the sale is approved. The closing will be seven business days after approval.
The mall at 10-42 Whitten Road in Augusta is the third Maine mall that has gone up for sale in the past year.
The Aroostook Centre Mall in Presque Isle sold for $4.65 million on March 8. The Bangor Mall was offered in an online auction site, and though the high bid reached $14.95 million, it did not meet the auction reserve so the mall’s future remains unknown.
Like the Bangor and Aroostook malls, the Turnpike Mall ran into business setbacks, including the closure of a Sears store in March 2017, that caused it to default on Feb. 1, 2018, on a loan taken with the mall as collateral. The mall is worth less than the loan, the documents state.
Boulos took over as receiver on March 12, 2018, to get the mall into shape for sale to the highest offer.
The mall includes Bed Bath & Beyond, Christmas Tree Shops and Petco stores.
“Since January 2018, the mall has not generated sufficient income to cover the entirety of the monthly debt service payment,” court documents said. “Borrower or its principals have not made up the difference, so that the loan is currently in default as of Feb. 1, 2018.”
The loan is for a total of $14.7 million, plus accruing interest and default interest, as well as trustees’ costs and fees.