ALPENA - The Alpena Mall is set to be sold to an Alpena business, according to court documents.
Wixom-based Alpena Mall, LLC entered into a contract to sell the mall for $900,000 to Cocoa Capital Corp. The contract was signed Feb. 29, and the sale is scheduled to close on March 29. This is considerably less than what the mall's owners owe to Armed Forces Bank; in September, the bank notified the mall owners that they had defaulted on a loan on which they owed more than $3.4 million, and the mall went into foreclosure in November. However, the bank agreed to the short sale in a motion filed on Monday.
Alpena Mall, LLC took out a $4.5 million loan from Armed Forces Bank in 1999. The mall recently was appraised to have a value of $1.75 million by the bank. The motion to allow the sale needed approval by 26th Circuit Court Judge Michael Mack because of the foreclosure.
Brian Winter, the owner of Cocoa Capital, could not be reached for comment.