Northwest Arkansas Mall Returned to Lender
by October 13, 2011 2:47 pm 80 views
Did you know an Arkansas investment group recently exited the ownership picture at Fayetteville’s Northwest Arkansas Mall?
Gone is the commercial development/investment trio of John Flake, partner in Little Rock’s Flake & Kelley Commercial; Doyle Rogers, leading shareholder in Little Rock’s Metropolitan National Bank and his namesake commercial development firm; and Sam Mathias, owner of Springdale’s Mathias Properties.
Their MMP Arkansas LLC transferred ownership of the 820,703-SF mall to an affiliate of CW Capital Asset Management LLC of Bethesda, Md.
Flake, Rogers and Mathias also conveyed their interest in the nearly 1.1 million-SF Citadel Mall in Colorado Springs, Colo., to CW Capital, which is acting as a third-party administrator.
Both transactions amount to properties forfeited in lieu of foreclosure.
In January 2010, we told you the group’s Midwest Mall Properties LLC disclosed during negotiations with its lender that the malls had insufficient cash flow to cover operating expenses and debt service.
You might recall that Flake, Rogers and Mathias also relinquished ownership of the 1.2 million-SF Crossroads Mall in Oklahoma City in April 2009 through a deed in lieu of foreclosure.
MMP’s three-mall acquisition in 2006 originally was portrayed as a $400 million deal. However, in an August 2009 interview, Flake said the transaction was much closer to $322.8 million, the amount of debt associated with the deal.