Gwinnett Place Mall Foreclosed On $39 Million Loan
The loan started at over $100 Million when it originated five years ago by Simon Property Group. Over the years it paid that amount down by approximately two thirds.
The foreclosure involves 27 acres of the Gwinnett Place mall including approximately 350,000 square feet of retail. The entire mall is more than 60 acres, including about 1.2 million square feet of retail space.
The plummeting value is par for the course in most suburban commercial areas around Atlanta. Especially since intown Atlanta markets have started to rebound.
Metro Atlanta has been experiencing the worst downturn in commercial property values in more than two decades.
Gwinnett Place has been struggling for years, not only because it was designed back in the 1980's and has become dated, but also because other more modern shopping malls have sprung up close by within the last 10 or so years. These new, more modern shopping malls offer pretty much the same retail stores and a whole lot more.
The next owner of the property will have their work cut out for them in making it a viable shopping center. They'll still have to face the same stiff competition that caused the first foreclosure while trying to attract profitable retailers who can succeed in a struggling economy.
Many area residents still believe the property cna once again be successful. As they say, only time will tell.