Illinois strip mall in foreclosure up for auction

The Pine Tree Plaza in Sterling, Ill., will be auctioned online after a string of tenant departures put the property in foreclosure.

The strip mall at 4311 E. Lincolnway once had several high-profile retailers, including Staples, Payless, Fashion Bug and RadioShack, but now its 58,209 square feet have an occupancy rate of only 28 percent.

Foreclosure proceedings were started in 2015, the same year Staples announced it would close its plaza store. The Sterling site was on a long list of stores to be closed in the wake of the announcement that Staples would acquire its main rival, Office Depot. The $6.3 billion deal ultimately was blocked because of antitrust concerns.

The mall, built in 1998, now is anchored by Dollar Tree, which has doubled its space since moving in. Smaller tenants include Sally Beauty, GameStop, Springleaf/One Main Financial and Advance America.

The auction, at Ten-X.com, will be open July 10 through 12. The minimum opening bid is $650,000.

The property was owned by Pine Partners LLC, and the Florida lender is U.S. Bank National Association.

Edgemark Commercial Real Estate Services LLC in Oak Brook is the asset manager and marketing agent for the auction. Edgemark representatives will be in town to take prospective buyers through the buildings.

The property's proximity to prominent retailers such as Walmart, Menards, Starbucks, Kohl's and Aldi should be its biggest selling point.

"It's shadow-anchored by Walmart, and there are docks behind the building, which should draw quite a bit of interest," said Rich DiBernardo, a vice president at Edgemark. "We're hoping the center will be revitalized by someone."

There is access to ample property information on the Ten-X site, he said.

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