The Nugget Mall, picture in April. (Michael Penn | Juneau Empire)

The Nugget Mall, picture in April. (Michael Penn | Juneau Empire)

Nugget Mall sale falls through, deed goes to creditor

Future of mall still up in the air as court process plays out

  • By Kevin Gullufsen Juneau Empire
  • Thursday, June 14, 2018 4:04pm
  • NewsLocal News

A planned buyer for the Nugget Mall has backed out of a $12.5 million deal, the Empire confirmed Thursday. The news puts the mall’s ownership in the hands of a creditor, its future uncertain.

The mall had struggled with a tenant vacancies and maintenance issues and had fallen into receivership, a legal process similar to bankruptcy. Court-appointed firm Resource Transition Consultants LLC took over the mall’s sale in 2015, according to court documents, and had received offers for the mall ranging from $10-$16 million.

A real estate brokerage firm valued the mall at $14.3 million. Aventine Development Services, a California-based company, offered $12.5 million. A Washington court approved that offer in April.

The mall has well-known issues with plumbing and environmental cleanup from an old dry cleaners on the property. But the prospective buyer saw more work to be done than they expected, said Kevin Hanchett, who oversaw the sale for Resource Transition.

Aventine asked for a reduced price after concluding it would cost them $1 million to repave the mall parking lot. Resource Transition Consultants couldn’t reduce the price, Hanchett said, as the only money leftover from the sale was set aside to pay lending company Columbia Pacific Advisors.

“After his examination of the property, he determined it had a greater level of deferred maintenace than he was expecting,” Hanchett said. “He asked for a price reduction, which we couldn’t give him because we already were at the point that the only person receiving the proceeds was going to be a secured creditor. He rescinded his offer, and that has now left us with a situation where there’s no buyers on the horizon, and the lender obligation is due in full.”

Resource Transition Consultants offered Columbia Pacific Advisors two options: send the property into foreclosure, or accept a deed to the mall in lieu of payment. Columbia Pacific chose to take the deed to the property, Hanchett said.

“We asked them if they wanted us to continue to market the property or take it back, and they opted to take the property back,” Hanchett said.

Columbia Pacific was not able to comment immediately when reached Thursday morning. This article will be updated should more information become available.

The Nugget Mall’s previous owners, C.E. Loveless and Barclay Tollefson, started their joint venture Loveless/Tollefson Properties to develop the Nugget Mall in 1972, court records show. Tollefson died in 2014, according to a Seattle Times obituary. Loveless is also deceased, according to a tenant manager at the mall. Family members of the two founders now run the company.


• Contact reporter Kevin Gullufsen at 523-2228 and kgullufsen@juneauempire.com. Follow him on Twitter at @KevinGullufsen.


More in News

(Juneau Empire file photo)
Aurora forecast through the week of Feb. 1

These forecasts are courtesy of the University of Alaska Fairbanks’ Geophysical Institute… Continue reading

The Norwegian Jewel begins its departure from Juneau on Thursday, Oct. 24, 2024, marking the official end of the annual cruise ship season. (Laurie Craig / Juneau Empire file photo)
Community support for cruise tourism continues slow decline in annual survey

29% say impacts generally positive, 13% negative; responses were 40% positive, 6% negative in 2002

Large cracks in the Mendenhall Glacier are observed by U.S. Forest Service officials on the morning of Tuesday, Feb. 11, 2025. (U.S. Forest Service photo)
‘A substantial portion of the Mendenhall Glacier is expected to collapse at any time’

Warning issued Tuesday morning by U.S. Forest Service after recent calving, large crack spotted.

A drone image shows widespread flooding in the Mendenhall Valley in Juneau on Aug. 6, 2024. The flood was from an outburst at Suicide Basin, part of the Mendenhall Glacier complex. A similar glacial outburst flood struck the same area in 2023. (Image courtesy of Rich Ross)
Bill would establish Alaska alternative to federal flood insurance program

The Alaska Legislature is considering a bill that would create a new… Continue reading

A girl uses her cellphone at Bronx High School of Science in New York on Jan. 11, 2016. (Yana Paskova for The New York Times)
Juneau School District seeks feedback from community on cellphone policy

The conversation rises from cellphone bans happening nationally and at the state level.

Juneau International Airport is getting new leadership in its administration and board of directors. (Peter Segall / Juneau Empire file photo)
Assembly names two new airport board members in shakeup after budget stalemate

Angela Rodell and David Epstein, both former members, to get quick start at seeking solution this week.

(Michael Penn / Juneau Empire file photo)
Police calls for Sunday, Feb. 9, 2025

This report contains public information from law enforcement and public safety agencies.

Blank posts are seen where the two totem poles once stood at the Fred Meyer main entrance on Feb. 7, 2025. (Jasz Garrett / Juneau Empire)
Fred Meyer totem poles get a second chance at life

Tlingit master carver says they will be refurbished with tribal youth and repurposed.

Most Read