OGDEN, Utah (ABC4) – Ogden’s Newgate Mall is set to be auctioned off in March after its owners allegedly defaulted on its loan agreement, Thursday.
According to the Woodmont Company, the building’s current receiver, and a legal ad placed in the Standard-Examiner, the Newgate mall is up for lease.
According to the ad, on March 19, the Newgate mall “will be sold at public auction to the highest bidder”.
Located at 3651 Wall Ave., the Newgate mall is one of Ogden’s main shopping plazas; incurring 30,000 daily visitors, and averaging about $74,349 in household income.
Court documents indicate after the mall’s owners allegedly defaulted on its loan agreement, the mall’s $58 million loan trustee, U.S. Bank National Association, was then sued in Ogden’s 2nd District Court, all in an attempt to place the mall under receivership.
A loan default occurs when a borrower fails to pay back a debt according to an initial arrangement resulting in secured creditors placing a receivership. A receivership is a remedy known to recover amounts outstanding under a secured loan in the event a company decides to default on its loan payments.
Back in 2016, the mall was first purchased by Time Equities Inc., a New York-based company, has for $69.5 million.
According to GlobeSt, at the time of the purchase Ogden was ranked as one of the nation’s fastest-growing suburban corridors; recently being named one of the top 10 real estate markets of 2016 – making it an attractive location for ongoing commercial and residential redevelopment efforts.