Newgate Mall sold in $20 million deal as Layton Hills Mall goes through bankruptcy
Newgate Mall in Ogden is pictured Feb. 19, 2021.
The exterior of the Newgate Mall in Ogden is pictured on Thursday, Feb. 18, 2021.
OGDEN — Newgate Mall has been sold in a deal worth $20 million, but the trustee representative who handled the sale at auction on Friday doesn’t foresee change in day-to-day operations at the retail outlet.
“There shouldn’t be any change,” said Timothy Dance, who handled the auction outside the 2nd District Court building at 2525 Grant Ave. in Ogden. “There should be no impact. There’s a new owner, that’s all.”
TIM VANDENACK, Standard-Examiner
Tim Dance, who handled the auction Friday, March 19, 2021, of Newgate Mall stands in front of the 2nd District Court building in Ogden, where the event occurred. About 10 people were on hand to watch.
Dance first asked those on hand Friday, about 10 spectators, if there were any bids, generating no response. He then submitted the offer that won out, a $20 million “credit bid” from a company affiliated with U.S. Bank National Association, called RSS UBSBB2012C4-UT NMH. U.S. Bank National Association had served as trustee for the $58 million loan tapped by prior mall owners Newgate Mall Holdings and Newgate Mall Equities to acquire the mall in 2016.
Preceding Friday’s auction, Newgate Mall was placed in receivership last July after U.S. Bank National Association sued in 2nd District Court to force the action when Newgate Mall Holdings and Newgate Mall Equities defaulted on the $58 million loan. Woodmont Company took over as receiver, handling day-to-day mall operations, and the Fort Worth, Texas, company will continue in that role, according to Dance.
Newgate Mall and Woodmont representatives haven’t responded to Standard-Examiner queries for comment since the matter came to public light last month. But the turn of events underscores the increasingly tough competition some brick-and-mortar retailers face from online retailers like Amazon. The COVID-19 pandemic, by prompting some to avoid public spaces to guard against spreading the virus, hasn’t helped.
Indeed, Newgate Mall isn’t the only Northern Utah mall facing financial woes. Layton Hills Mall in Layton and its parent company, CBL & Associates Management of Chattanooga, Tennessee, filed for bankruptcy protection in U.S. Bankruptcy Court in Houston, Texas, last November. In a CBL press release at the time of the bankruptcy filings, Stephen Lebovitz, the company chief executive officer, offered assurances that the firm, owner of 84 malls and other properties in all, would work through the situation.
“It’s business as usual at CBL’s properties. All CBL’s properties have reopened in accordance with the latest guidance from state and local governmental orders and will continue to operate as normal. Visitors to our properties will not notice any change in our operations,” Lebovitz said in the statement. Going through Chapter 11 bankruptcy proceedings, another CBL statement added, will allow the firm to reorganize, restructure and keep operating.
’MAKE IT WORK'Dance described Friday’s $20 million offer for Newgate Mall from RSS UBSBB2012C4-UT NMH as a “credit bid” against the amount owed on the 2016 acquisition of the mall by Newgate Mall Holdings and Newgate Mall Equities. Under Newgate Mall Holdings and Newgate Mall Equities, the mall here was part of a portfolio of properties of New York City-based Time Equities. The $58 million loan used to acquire Newgate Mall in 2016 came due last May and a credit bid typically reflects the amount a debtor still owes.
Though mall reps weren’t saying much, online Utah Division of Corporations and Commercial Code records show that RSS UBSBB2012C4-UT NMH shares the same Miami, Florida, address as Rialto Capital Advisors, affiliated with U.S Bank National Association. CT Corporation System of Midvale is the registered agent.
Friday’s transaction, with little response from the principles involved, stands in contrast to Times Equities’ acquisition of the Newgate Mall in 2016 in a deal worth $69.5 million in all. Following that deal, those involved waxed optimistic about the prospects of the mall, located at 3651 Wall Ave.
“Newgate Mall serves as a wonderful addition to our unique portfolio of mall and outlet centers located throughout the U.S. and Canada,” a Times Equities rep said at the time. “Newgate Mall has an excellent tenant mix, offering a premier shopping and social experience to the residents of Ogden.”
Those on hand for Friday’s auction included operators of businesses at the Newgate Mall, like Darren Dunford, owner of Quilted Bear. One of his worries with a change in ownership is a jump in rent prices. “That’s my main concern,” he said. Dunford also said he’d like to see the mall owner invest more money into the mall to remodel and revamp it.
Whatever the case, Dunford also said Quilted Bear is managing, notwithstanding the pandemic and the impact it’s had on traditional retail. “It’s been good considering everything that’s going on. … We’ve remained profitable,” he said. He’ll stick around, he went on, “as long as it makes sense to be there.”
Another man present expressed hope that new owners would steer Newgate Mall in a different direction. “We’re just here to observe, see how it goes. Hope somebody jumps in who can make it work,” said the man, who declined to give his name.
