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HOUSTON-The offering door is open until Friday for the 1.08-million-sf West Oaks Mall, which is being sold by Cushman & Wakefield of Texas Inc. for a bankruptcy court trustee. The 91%-leased mall, last appraised at $109.8 million, is being offered under terms of a reorganization plan confirmed by the federal bankruptcy court in Richmond, VA.

The sale entails only about half of the single-level enclosed regional mall at 2600 Texas 6 S. Not included are 500,400 sf of anchor spaces owned by Macy’s and Dillard’s. The remaining space, including additional anchor sites leased to Sears and Steve & Barry’s, was owned by a group of investment entities organized by the Richmond-based 1031 Tax Group LLC.

According to the Houston Chronicle, the owners requested bankruptcy protection in October 2007. In July 2006, Investment Properties of America LLC of Richmond used the mall as collateral for an $86-million loan secured in a commercial mortgage-backed security referred to as Greenwich Capital 2006-GG7.

Sears’ 102,000-sf lease expires in August 2010. Steve and Barry’s lease for 87,000 sf expires in January 2013. The mall generated net operating income of $6.57 million in revenue of $12.31 million in 2006, the last year for which figures were publicly reported.

Under established bidding procedures, C&W will solicit contracts from prospective bidders after which bankruptcy court trustee Joseph J. Luzinski will identify qualified bidders and select one as a stalking horse. Prospective bidders are required to execute a confidentiality agreement, submit a written purchase contract by Friday, make a good faith deposit of $250,000 and commit to close the transaction by Dec. 15.

If more than one qualified bid is received, C&W says the trustee may elect to conduct an auction Oct. 27 in Dallas. If an auction is held, only qualified bidders may participate, with the trustee-selected stalking horse’s offer as the opening bid. The trustee also is empowered to set a break-up fee, which is payable to the stalking horse if another bidder wins the auction process.

The mall was built in 1984 and went through several changes of ownership, renovations and expansions over the years. According to Internet research, the mall underwent a $10-million renovation by Somera Investment Partners of Santa Barbara, CA, CoastWood Capital Group of Greenwich, CT and Seligman Western Enterprises of San Francisco, which had bought it in 2003 and sold it in 2005 to Investment Properties of America.

Tom Salanty, executive director in C&W’s capital markets group, is in charge of the sale. He did not return telephone calls by deadline to comment about the forced sale. The trustee’s financial adviser is Development Specialists Inc. of New York City.

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