CHARLESTON – U.S. Bank National Association has filed a lawsuit against the Charleston Town Center for defaulting on a loan.
The lawsuit was filed on Nov. 7 in Kanawha Circuit Court.
U.S. Bank wants a receiver be appointed for the mall until the property can be sold.
The bank claims because the loan is in default, it is entitled to all profits and income generated by the shopping center’s leases.
The mall’s owner defaulted on a $100 million loan that was issued in 2007 and reached maturity in September, according to the suit.
The original loan, in the amount of $100 million was given by Morgan Stanley Mortgage Capital in September 2007, according to the suit. U.S. Bank eventually became the trustee.
The mall owners also agreed that in the event of a default, the bank would immediately be entitled to possession of all rents and sums due under any lease guarantees, whether or not the lender enters upon or takes control of the property.
One of the mall owners previously attempted to sell its stake in the mall
In October, Queensland Investment Corporation canceled plans to buy a 26 percent controlling stake in the mall from Forest City Enterprises.
Queensland already has a 24 percent share of the mall after a 2013 partnership with Forest.
The bank is represented by Arie M. Spitz and Matthew P. Kingery.
The case is assigned to Circuit Judge Joanna Tabit.
Kanawha Circuit Court case number: 17-C-1527
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