U.S.Bank NA is requesting that a court appoint a receiver to take immediatepossession of CBL & AssociatesProperties Inc.'s Chesterfield Mall in Chesterfield, Mo.
The lenderclaims in a suit filed in the Circuit Court of St. Louis County that borrowerChesterfield Mall LLC has defaulted on a $140.0 million loan and has failed toobserve and perform material obligations owed its tenants. U.S. Bank wants toinstall Madison Marquette Retail Services LLC as receiver to take possessionof, collect rents, manage and operate the property during the course of thesuit.
U.S.Bank estimates the property to be worth $63.0 million.
CBLacquired the mall in2007 as part of deals worth $1.03 billion with Westfield Group for four St.Louis area malls.
Thecompany said in its first-quarter filing that as of March 31, the property hadbeen classified as a "lender property," indicating that it wasworking with the lender to either restructure the property loan terms or conveyit to the lender. The company excludes lender properties from its same-centerpool given that the servicer controls the cash flow from those properties.
ChesterfieldMall had been classified as a "repositioning property" since March31, 2015, meaning the company had decided the current format no longerrepresented the property's best use and that it was exploring alternatives forthe property.