Town Center Mall SOLD By Owner - Almost
By Jon A. Brake
The rumors are true. The Manhattan Town Center has been sold. Well, sort of.
The un-named purchaser has until August 10 to look over the property,
read the leases and then put down money. The
center will not be sold on August 10 but, after the deposit has been made the real work will begin. Until then the property is
off the market.
The buyer was in Manhattan on Tuesday and Wednesday looking at the center
and talking with story owners. Monday mall
employees were told by Forest City management about the up-coming sale.
The new owner is from Kansas City and the $28 million price tag is not
a problem. Getting contracts with three different
owners and working with the City of Manhattan will be the biggest hurdles.
The City of Manhattan owns the land and Forest City has a ninety-nine
year lease. The lease calls for the City to be paid
$180,000 a year plus a percentage of any profit.
If the Town Center sale is completed the City of Manhattan will participate
in any profit. This could be complicated by rental
leases that call for some new stores to not pay rent for several years.
The new owner would also like to purchase the land from the City. The
City has non-transferable bonds on part of the
property and may prevent the land sale. The City will need to approve the lease transfer but they do not have a right to stop