If you think buying real estate is too expensive where you live, perhaps you should head to Pennsylvania. That’s where the Pittsburgh Mills mall in Frazer county just sold for $100. The catch is, it comes with $143 million dollars in debt.
Since the bank doesn’t actually have to pay anything it bids, just apply it as a credit towards the $143 million in loans and associated fees, it could have bid up anyone attempting to buy it for a ridiculously low price. It was never in doubt that the bank would retain the mall, due to its rock-bottom value.
At one point in its history, the mall was worth an approximate $190 million dollars, but the most recent appraisal had its value at just $11 million. That’s a huge drop off for the mall itself, and also signifies a symptom in brick and mortar shopping everywhere.