Private real estate investors bought the Knoxville Center mall for about one-third of its appraised value, according to a report from the U.S. Securities Commission.
Knoxville Partners LLC purchased the 964,000-square-foot mall for about $10.12 million, a fraction of the $31 million appraisal from Knox County Assessor’s Office in 2015.
The mall opened in 1984 as East Towne Mall. Simon Properties owned, managed and operated the mall until 2014. Simon turned it over to WP Glimcher in 2014 but continued to manage it.
According to federal records, an affiliate of mall owner WP Glimcher on Aug. 19 completed the sale.
Terms consist of $3.85 million being paid to Glimcher at closing and the issuance of a promissory note for $6.2 million loan from the seller to the investors. The loan calls for an interest rate of 5.5 percent and "a term expiring in August 2017 when factoring in the available six month extension."
The loan is being secured by the property itself, according to federal records.
Also, on Monday the OneLife Church announced it had purchased the former Just for Feet store located at the entrance to the Knoxville Center mall along Mall Road, parallel to Interstate 640.
Sale of the 2-acre site and 19,000-square-feet building closed Monday, according to the church's announcement.
The church, which has campuses in Halls and Powell, hopes to open after renovation at the site in time for Christmas events.
Pastor Rodney Arnold met last week with the investment group that's buying it and is optimistic about the project going forward, according to the announcement.
OneLife's plans for the old shoe store include new signage and a new facade and revamped parking. Inside, plans call for a 400-seat auditorium that can also serve as a performing arts theater, according to the announcement.
"OneLife's desire is for the building to be a resource for the community to use," the statement reads. "Recreation leagues, community theater groups and local schools have all used other properties the church renovated and occupies in other retail developments."
The Halls facility will move to the mall location.