NU Property, LLC bids $1.2 million for mall
NEW ULM – A single bid was made at a mortgage foreclosure sale for the north end of the Markplatz Mall at the Brown County Sheriff’s Office Wednesday.
Le Sueur attorney Gary Monahan, representing New Ulm businessman Randy Danielson, and on behalf of New Ulm Property, LLC, bid $1,205,737.48 for property described as Lots 2 and 3, Block 1, Markplatz Mall First Addition, 101 N. German St.
Monahan said the amount bid was what the amount that New Ulm Retail and Development, LLC, defaulted on the current mortgage for the part of the mall being sold. Danielson added that the amount due over a six-month redemption period after the sale, would incur additional costs and interest.
“We’re discussing the possibility of several new stores coming into the mall,” Danielson said at the sheriff’s sale. “There are many nice parts of the mall, but it’s difficult to manage when it’s divided up into several mortgages. I tried to avoid this sale, but the other party (New Ulm Retail and Development), wouldn’t come up with the price I wanted.”
After the Tuesday sale, Monahan took a Sheriff’s Certificate of Sale to the Brown County Recorder’s Office to have the document recorded.
“It’s about time. I’m glad,” Danielson said.
After the foreclosure notice was published several times in Legals section of the classified ads in The Journal earlier this summer, Danielson said he still wanted to work with the other parties involved with the mall, but that their time is running out.
The original principal amount of the mortgage filed March 10, 2005 executed by Retail Investment II, LLC, as Mortgagor, in favor of American Bank of St. Paul, as Mortgagee, for the north end of the mall was $875,000. The mortgage amount grew to $1,168,374.21 as of May 28, 2014.
In June, 2008, former mall owner Bob Petroff of Retail Investment II, LLC, sold the south third of the mall to Danielson. Petroff earlier proposed to turn the mall into an apartment project, but that plan never got off the ground.
Petroff said other mall space in Minnesota became offices, service businesses, schools, churches, non-profit organizations, government agencies and driver’s license bureaus.
In recent years, the Marktplatz Mall included an investment business, retail outlets, daycare, a nails salon and a church office.
(Fritz Busch can be e-mailed at firstname.lastname@example.org).