Century III Mall Redevelopment Plan Clears Hurdle: Report

PITTSBURGH, PA - The owners of the all-but-vacant Century III Mall could emerge from Chapter 11 bankruptcy soon after reaching an agreement with their largest creditor, Sears Holdings Corp. An attorney representing Las Vegas-based Moonbeam Capital Investments has told a U.S. Bankruptcy Court judge that Moonbeam and Sears have resolved their differences, the Pittsburgh Business Times reported.

Sears exited the mall years ago, but has been locked in a financial dispute with Moonbeam that helped propel the mall owner to file for bankruptcy in September 2018.

In a bankruptcy court filing in August, Sears objected to Moonbeam's plans to raze the massive mall building and turn the property into a mixed-use development. Moonbeam is proposing more than a dozen new buildings on the site that would include office space, retail, a hotel, entertainment complex, restaurants and possibly a senior living facility.

Sears labeled that plan "speculative at best, and contended its success hinges on yet unidentified lenders and funding sources appearing to provide (Moonbeam) with over $100 million in loans."

Century III's interior is vacant and most of its entrances are boarded up. The only remaining tenant is a JCPenney department store.