Mall to remain open through foreclosure - KOAA.com | Continuous News | Colorado Springs and Pueblo

Mall to remain open through foreclosure

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The Chapel Hills Mall in Colorado Springs has gone into foreclosure. News of the financial default comes just two weeks before Black Friday and the start of the holiday shopping season.

The foreclosure notice was formally published by the El Paso County Trustees Office on Wednesday, but the mall has actually been in receivership since late August when the bank, Capitol One National Association, sued owners Garrison Investment Group of New York.

According to trustee records, Garrison defaulted on around $37 million dollars in debt between two separate loans.

A manager for the court appointed receiver, Cordes and Company, tells News 5 they notified all the tenants and vendors who have interests at the mall of the change this summer and even kept the same management company on board to run the day-to-day. 

Patrick Donovan, Managing Director of Cordes and Company, said it's in everybody's best interest to keep the mall up and running.

"Ownership will transfer but it will not be closed down. I mean it's not in the bank's best interest to close it because that's a source of repayment for its loan," Donovan said. "So, it's business as usual."

The trustees office has scheduled an auction for the property in early March. However, Capitol One and Garrison may end up making a private sale of the property through the courts before then. In fact, Donovan said the two parties took that exact step back in September when selling a public storage business that Garrison owned nearby.

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