Little Known About Crossroads Center Sale

(KNSI) – The sale of the Crossroads Center mall in St. Cloud remains shrouded in secrecy.

On January 19th, Stearns County District Court Judge Laura Moehrle published a judgment okaying the purchase of the property by Contrian Crossroads LLC. The agreement was first reached between the company and the mall’s receiver, Trigild IVL, on December 29th.

Very little is known about Contrarian Crossroads LLC. It is domiciled in the State of Delaware, like many companies. A filing with the Minnesota Secretary of State’s office only lists information about its registered agent, Corporation Service Company. CSC operates in Minnesota from an office suite in Roseville. Its principal business address is in Houston, Texas. It serves as an agent of several companies across the country.

The previous owner of Crossroads Center was multinational property giant Brookfield through a real estate holding company named St. Cloud Mall LLC. It stopped making payments in fall 2020 as a consequence of the economic lockdowns related to the COVID-19 pandemic. It still owed $84 million in principal on the loan.

The judgment keeps the transaction details between U.S. Bank Trust Company and Contrarian Crossroads LLC hidden. U.S. Bank Trust’s counsel, Karla Vehrs of Ballard Spahr, wrote in a filing last month that the purchase agreement is, “replete with confidential terms that relate to the relationship that will exist between Plaintiff and Buyer, as lender and borrower, following the closing contemplated by the PSA [purchase of property agreement]. Those terms reflect a private commercial transaction, into which the public generally has no right of inquiry. Additionally, the PSA contains confidential and proprietary information regarding the sale of the PSA Property including, but not limited to, information relating to the economic, commercial, operating, performance and valuation information of the PSA Property. In the ordinary course, such terms related to the sale of the PSA Property would not be known to the public.”

The judgment says the mortgage has been amended and restated, which likely means the principal value is less than the $84 million owed by Brookfield, but that isn’t known for sure. The new owner is responsible for all back taxes, federal liens, and liens related to the original financing statement and loan documentation.

KNSI News has reached out to other private equities firms in the state, the Stearns County Assessor’s Office, and the City of St. Cloud to see if they have any additional information that could be shared regarding the sale.

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