Lender forecloses on Shenango Valley Mall - WFMJ.com News weather sports for Youngstown-Warren Ohio

Mall placed under receivership

Lender forecloses on Shenango Valley Mall

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HERMITAGE, Pa. -

A New York-based lender has foreclosed on a $3.4 million dollar loan made to the operators of the Shenango Valley Mall and a federal judge has placed the property under receivership.

An order signed by U.S. District Judge Cynthia Reed Eddy earlier this month places the mall under the control of Metro Commercial, who will operate the mall, including collecting rent from the current mall tenants for the lender, Iowa Square Realty.

According to court documents, JSMN Shenango Valley Mall LLC of New Jersey stopped making payments on the loan in August.

In addition, $222,729 in property taxes were paid a month late in December.

Judge Eddy has issued a judgment for Iowa Square, in the amount of $3,430,720 plus interest.

The court order places the future of the mall is in the hands of Iowa Square.

The order addresses the possibility of JSMN Shenango Valley Mall LLC filing bankruptcy, saying that the company has to notify the court if it intends to do so.

Like many other mall properties around the country, the Shenango Valley Mall has seen large anchor tenants close their doors.

Sears and Macy's closed their Shenango Valley Mall stores last year.

Some smaller stores, such as Rue 21 followed with the closing of it's Hermitage store.

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