The real estate group that owns Elkhart’s Concord Mall is being ordered to pay almost $7 million dollars in unpaid expenses. The mall’s original owner – Concord Mall Properties, LLC – sold the mall to Chicago-based Ton Real Estate Investments X, LLCback in February 2020.
This May, Concord Mall Properties filed a court complaint that Ton Real Estate had defaulted on the agreed-upon $6.48 million promissory note.
In a judgement issued last week, Elkhart Superior Court Judge Teresa Cataldo ordered Ton Real Estate to pay that $6.48 million, plus $456,821.38 in past due interest, late fees and property taxes. The company is also on the hook for $35,000 in attorney fees.
The mall went into receivership in July and is now financially managed by Bradley Company, LLC. The receiver said in its September operations report that mall’s outstanding utility bills have been paid, but rent collection has been an issue.
Tenants mistakenly paid at least $60,854.46 in August rent directly to Ton Real Estate rather than the receiver. The operations report says Ton paid Bradley $20,000 as part of an understanding to delay a contempt of court hearing, but the remaining rents have not been remitted.
The report says the receiver has made payments toward property insurance, utilities, mall staff, security and management fees, but over $283,000 of outstanding expenses remain – mostly in real estate taxes.
The judge’s order allows Concord Mall Properties to seek a separate order to re-sell the mall and put the proceeds toward unpaid expenses.
Contact Gemma at gdicarlo@wvpe.org or follow her on Twitter at @gemma_dicarlo.
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