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Akron -- A foreclosure action has been taken on the Chapel Hill Mall property and a new firm is now managing the site.
A foreclosure complaint was filed by U.S. Bank National Association against CHM/Akron LLC c/o CBL & Associates Properties Inc. in Summit County Common Pleas Court on June 19 claiming nonpayment of a $77 million loan.
CBL & Associates Properties, based in Chattanooga, Tennessee, is the owner of Chapel Hill Mall, according to CBL's website. McKinley Inc., based in Ann Arbor, Michigan, will now be managing the property.
According to the foreclosure complaint, CHM/Akron LLC executed a $77 million loan agreement with UBS Real Estate Investments Inc. in July 2006.
In the complaint, U.S. Bank National Association stated CHM/Akron LLC "defaulted on the terms of the [Promissory] Note, the Loan Agreement and the Mortgage by … failing to make payments at the time and in the manner required by the Note and the Loan Agreement."
On July 8, Summit County Common Pleas Court Judge Lynne S. Callahan appointed a McKinley Inc. employee as the receiver in this matter, meaning the appointee "will have the full power and authority to take possession of, manage, maintain, preserve, protect and operate, as well as to demand and collect the revenues and rents from … Chapel Hill Mall," according to court records. McKinley's Institutional Commercial Real Estate group manages seven enclosed malls, according to a company news release.
Dan Summerlin, director of corporate relations for CBL & Associates Properties Inc., declined to comment on the matter.
James Botti, the attorney representing U.S. Bank National Association, could not be reached for comment by press time.
Justin Ristau, the attorney representing CHM/Akron LLC, also declined to comment on the case.
Chapel Hill Mall, located at 2000 Brittain Road in Akron, was opened in 1966 and was renovated in both 1995 and 2006, according to CBL's website. The mall is home to 98 tenants, including anchor retailers Macy's, Sears and JC Penney.
McKinley has owned and operated commercial real estate in Ohio since 1989 and is the owner of the FirstEnergy Building and Akron Center Plaza.
The foreclosure action is pending before Judge Callahan. A court date has not been set in the case, according to an official with Judge Callahan's office.