Less than two years ago Gulf Coast Town Center was coming out of the recession like gangbusters, on its way to being a Southwest Florida mecca of dining and retail. Now south Lee County’s commercial epicenter is stunning the region with news it’s going on the auction block as a result of a $212.7 million foreclosure – the largest stand alone foreclosure in Lee County history.
No one thought it would come to this when Wells Fargo Bank sued the mall’s owners last year for defaulting on their $191 million loan. The online foreclosure sale is set for May 18.
CRE Consultants partner Stan Stouder said the turn of events is surprising, but not troubling. He said, “When I look at the fundamentals, they couldn’t be better : minutes to the interstate, extremely good anchors, a great tenant mix and the product has curb appeal.”
Anchored by Bass Pro, Super Target and a 16-screen Regal Cinema, the 100-store mall is minutes from I-75, an expanding Florida Gulf Coast University and Southwest Florida Airport. Outwardly, you wouldn’t guess there was a problem. It has more to do with the owners’ situation than with the south Lee County market, local experts agree.
“The income wasn’t paying the debt. That’s the issue in these situations,” real estate asset management advisor Ed Bonkowski said.
So what happens next?
The mall is being managed by Dick Wilscher, who works for receiver McKinley based in Ann Arbor, Michigan. Wilscher said he has a capital budget to do some marketing and maintain the property to keep the tenants in place.
“The tenants won’t have a hugely different experience than they’re having now. From a public view, it won’t be evident whether John or Jeff owns the center,” Stouder said.
The online foreclosure sale starts 9:00 a.m. Wednesday, May 18th. The case number is 15-CA-051063.
