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May 6, 2016

Greendale Mall foreclosure auction set for May 26

Greendale Mall is set for a foreclosure sale this month.

The Greendale Mall will be sold at auction this month as part of a foreclosure on the struggling retail property.

The mall, that has been underperforming for some time and lacks tenants, has been foreclosed on and will go to auction on May 26. The foreclosure was filed by Capmark Finance Inc. against Mayflower Greendale, L.P., according to a public notice. The mall was owned and managed by Simon Property Group that also owns and operates the Auburn Mall and Solomon Pond Mall in Marlborough.

The Greendale Mall has been in financial trouble, with only an 80-percent occupancy rate, leading to the mall not bringing enough profits in to cover the $45-million commercial mortgage-backed securities (CMBS) loan on the property, according to Trepp, a data provider for those in the commercial real estate. That resulted in the loan being foreclosed on and sent out to special servicer C-III Asset Management in October of last year.

The property was recently revalued by that organization at $14.7 million, or 23 percent of the $65 million it was valued at in 2006. That news came as the mall has struggled to bring in revenue and faces down major tenants with leases soon to expire, such as Best Buy, whose lease expires in 2017.

The mall will be sold at an auction on May 26 that will be held at the mall.

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