Muncie Mall sold to Wells Fargo at sheriff's sale; bank seeks buyer

MUNCIE, Ind. − Wells Fargo Bank is officially the new owner of the Muncie Mall after purchasing the once thriving retail center at a sheriff's sale on May 10.

The bank made the purchase after developer Washington Prime Group ceased paying the mortgage on the property in 2020 and filed bankruptcy in 2021.

The move will now allow Wells Fargo to sell the mall, Muncie Mayor Dan Ridenour said.

He said the property was being marketed now but he did not think the bank had a firm prospect to buy the property at this point. The asking price for the mall was $32 million.

Business: 'So much potential': What can save the Muncie mall?

The portion of the building that include Buyers Markets had already been bought by that retailer.

Two of three anchor spots at the mall are currently empty, along with much of the interior space the mall, which was built 53 years ago.

The effort to sell the property is a positive for the location, according to Ridenour.

Other retail spots in the area, including open-air strip malls and a free standing Target store, appear to be drawing customers. A new pet supply store is being built near the mall and the nearby Muncie Marketplace shopping center, which includes Dick's Sporting Goods, was recently bought by JLL Capital Markets for $14.6 million.

But Michael Hicks,director of the Center for Business and Economic Research at Ball State University, said the future of the mall might not be as a traditional mall.

Retail: Bon-Ton 'wind-down' appears to mean Carson's closing at Muncie Mall

"I’m not sure the ownership structure will have much affect on the future of the Mall," Hicks said. "The economic prospects for retail in a low income city with declining population is particularly poor."

But novel and successful functions for the large interior spaces can be found.

"The good news is that with the proliferation of these empty malls, there are many experiments to repurpose them for other uses," he said. "Recreation, healthcare and groceries are all increasingly common uses for older malls."

He said that a healthcare venue is unlikely to be an option in Muncie, "because the region is too monopolized for entrance by a competitor."

But he added that other uses are probably in the future for the mall.

This article originally appeared on Muncie Star Press: Wells Fargo buys mall out of sheriff's sale searching for buyer