Shops at Broad creditor Trez objects to proposed property sale

By Sarah Lizee

Olympia, Wash., Oct. 27 – Shops at Broad, LLC’s motion seeking court approval to sell a 6.87-acre shopping center property in Mansfield, Tex., to Realty Capital Management, LLC for $2.25 million drew an objection from Trez Shops at Broad, LP, according to court documents filed with the U.S. Bankruptcy Court for the Northern District of Texas.

The property, which became operational in 2019, is the debtor’s only substantial asset.

Trez said it is a primary perfected secured creditor in the debtor’s case by virtue of a first-lien construction loan made in 2018 and a second-lien construction loan made in 2019 on the property.

In its motion seeking approval of the sale, the debtor claimed the sale satisfies the bankruptcy code because Trez would consent to the sale of the property.

Trez, however, said it doesn’t consent to the sale of its collateral, and the debtor has not given an alternative basis to sell the property over its objection.

The Atlanta-based retail property owner filed bankruptcy on Sept. 2 under Chapter 11 case number 22-42059.

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