Lawsuit: St. Cloud mall owners haven't paid loan in nearly three years, owe $84 million

ST. CLOUD - A subsidiary of U.S. Bancorp has initiated foreclosure proceedings against the owners of Crossroads Center mall, claiming the company hasn't paid on the loan in nearly three years and owes $84 million.

U.S. Bank Trust Company filed a civil lawsuit against St. Cloud Mall LLC, which is affiliated with New York-based Brookfield Properties, this week in Stearns County District Court. It asks the court to allow for the sale of the property and to enter a judgment against the owners in excess of $83.9 million, which the mall's owner owes on the principal, as well as interest and other fees.

The lawsuit states the "borrower failed to pay all amounts due under the loan documents on the Aug. 6, 2020 monthly payment date and all subsequent monthly payments dates thereafter."

Brookfield did not respond to a request for comment. Brookfield told the Star Tribune in late April that it is "constructively working with the lender to identify the best possible outcome for the future of the shopping center community."

The mall's occupancy has declined since 2016. As of September, the Crossroads Center was about 87% leased. Many malls across the country and state, including the Mall of America, suffered from depleted sales during the pandemic after mandated store closings, and people transitioned to buying products online instead of in person.

U.S. Bank Trust wants the court to appoint a receiver to manage and operate the mall, including collecting rent.

Crossroads Center is the largest regional shopping mall in the state outside the Twin Cities. It opened in 1966 with about two dozen stores and has expanded to nearly 900,000 square feet of retail space. Current anchor stores include J.C. Penney, Macy's, Scheels All Sports and Target. A Pandora store recently opened, according to its website.