More Trouble For Crossroads Mall
by October 19, 2009 12:00 am 107 views
Remember the 941,745-SF Crossroads Mall in Oklahoma City once owned by a trio of Arkansas investors: John Flake, Doyle Rogers Sr. and Sam Mathias?
You might recall Crossroads, touted as an 84-acre development and the largest shopping mall in Oklahoma, was returned to the lender earlier this year.
The project now carries a listing price of $24 million after it was recovered in an $11.2 million foreclosure sale.
The Arkansas group assumed a $61.2 million non-recourse loan from Bear Stearns Commercial Mortgage Inc. of New York when it entered the ownership picture nearly three years ago.
A recent twist to the story is the holder of the Crossroads debt has sued Flake, Rogers and Mathias and claims a legal loophole to the non-recourse financing.
Crossroads-Maiden Lane LLC of New York is seeking a deficiency judgment of $65.4 million, alleging the investors triggered recourse liability when management of the property moved to Little Rock’s Flake & Kelly Commercial.
Other legal technicalities are alleged in addition to the termination of the original management agreement.
Attorneys for Flake, Rogers and Mathias counter that the plaintiff’s interpretation of operative agreements are based on “erroneous facts” and that the loans remain non-recourse, with only the property securing the loan.