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Bangor and Aroostook malls are for sale

BY Staff

1/21/2019
Courtesy / Ten-X
Courtesy / Ten-X
Bids start at $6.5 million for the Bangor Mall, located at 663 Stillwater Ave. in Bangor.

The Bangor Mall has been listed for auction and Aroostook Centre Mall in Presque Isle is for sale through a streamlined transaction process that allows sellers and buyers to see offers directly and enables each party to know where they stand.
Bids start at $6.5 million for the Bangor Mall, at 663 Stillwater Ave. in Bangor. There is no starting bid other than “best offer" for the Aroostook Centre Mall.
Both sales are being run by Ten-X, an online real estate company headquartered in Irvine, Calif.
The Bangor Mall auction will be Feb 25-27, and requires a participation deposit of $50,000.
Built in 1978 and renovated in 1998, the mall is 72% occupied. The mall is anchored by Dick’s Sporting Goods (68,054 square feet), Furniture Mattresses & More (120,000 square feet) and J. C. Penney (88,482 square feet), with several outparcels, including Bangor Mall Cinemas 10 (unowned), Chick-fil-A and Hannaford supermarket, as well as Pizzeria Uno and other chain stores and restaurants.
Hannaford and J.C. Penney recently signed extensions of their leases through February 2024, according to the listing.
Furniture Mattresses & More recently opened in the former Macy’s space — an expansion and relocation from the Airport Mall, on Union Street.
The mall is approximately 651,032 square feet (531,032 square feet owned) of gross leasable area, on 88 acres. It has gross and net operating incomes of $7.8 million and $3.7 million respectively.
Ten-X and Newmark Knight Frank, a commercial real estate advisory firm headquartered in New York City, are marketing the property.
Ten-X handled the online auction of the Bangor Mall’s former Macy’s space in December 2017. Lionheart Capital subsidiary Out of the Box Ventures LLC won that auction, and subsequently leased the space to Furniture Mattress & More.
In December 2017, the mall’s value plummeted when an appraisal conducted by LNR Partners of Miami Beach, Fla., a loan servicer that specializes in troubled debt, valued it at $28.9 million. At the time, the Bangor Daily News  reported that the valuation was down 77% from the mall's $128 million value in 2007, when its primary owner, Simon Property Group of Indianapolis, took out an $80 million loan, using 536,299 square feet of the mall as collateral. Simon defaulted on the loan in October 2017.

Ten-X’s Aroostook Centre Mall sale is being handled through its "Offer Select" transaction solution, which offers transparency in a streamlined transaction process that allows sellers and buyers see offers directly and enables each party to know where they stand. 
Offer Select accelerates and streamlines the traditional CRE transaction by moving it online. Interested buyers can submit offers online while sellers can review offers, provide guidance and ultimately select a winning offer. Prospective buyers can sign up for a free account and receive  notifications on the property until it's sold.
The mall, at 830 Main St., was built in 1993 and has 569,882 square feet on 38 acres; 557,601 square feet is rentable space.
Lowe’s holds a ground lease on a portion of the property.
The mall portion of the property “offers a significant value-add opportunity once the investor is able to bolster the center’s net operating income via a strong leasing program,” according to the listing.
Earlier this month, the Aroostook Republican reported that the women's clothing store Maurices will close in late January because of underperformance.
In 2015, the mall lost two tenants after national retailers Sears and Staples announced they were pulling out. Sears retail and auto center was one of the largest tenants at the mall at that time.
The mall got a boost in late 2017, when Harbor Freight Tools opened a store there.
The mall was bought by Wells Fargo at a foreclosure auction in October 2017.
Editor's note: This story has been updated to clarify that the sale of the Aroostook Centre Mall is not being handled as an online auction.