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Penn. mall once worth $190 million sold to bank for $100

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By WPXI.com

One of the biggest indoor malls in Pennsylvania sold at auction Wednesday for $100.

The 1.1 million-square-foot Galleria at Pittsburgh Mills was bought by Wells Fargo Bank, which foreclosed on it last year.

Wells Fargo was the only bidder and essentially bought the mall from itself.

The mall, which opened in 2005, is located in Frazer Township, Pennsylvania. It was developed by Johnstown-based Zamias Services Inc. and Mills Corp., a Virginia firm that has since gone bankrupt.

The mall was once worth $190 million but recently appraised at just $11 million, according to the Associated Press.

Pittsburgh Mills Limited Partnership, which is owned by Zamias, owes Wells Fargo about $143 million including deferred payments and interest on a $133 million loan taken out in 2006.

According to the public sale notice, Wells Fargo is allowed to buy the property from itself without paying any cash, instead crediting the purchase against the $143 million owed.

It’s possible the bank will try to revive the property.

The Associated Press contributed to this report.

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