The former Eastland Mall property now known as the Eastgate Metroplex in East Tulsa.A former mall property in East Tulsa is facing a foreclosure suit after the current owners failed to pay back a nearly $2.4 million loan.
According to documents filed in Tulsa County District Court Tuesday, Spirit Bank alleges the owners of the former Eastland Mall property, Eastland Partners L.L.C., failed to pay bay back a loan extended to them in September of 2008.
Court documents go onto say Eastland has "failed and refused and continues to fail and refuse to pay the indebtedness due to the bank pursuant to the note and is in default of its obligations to the bank."
Spirit Bank is looking to recoup its losses through a sheriff's auction of the property.
Late Thursday afternoon, Rob Phillips, the managing partner of the Eastgate Metroplex, released a statement to KTUL.com. "Eastgate Metroplex is not in foreclosure, there appears to be a miscommunication regarding the legal action filed regarding the former Dillard's location adjacent to the Eastgate Metroplex. We own more than 2 million square feet of commercial space in Tulsa and the surrounding areas and have never had a foreclosure notice filed on any of our properties in more than 30 years in the business. While we regret the position Spirit Bank has taken, we hope to have the issue resolved shortly."
KTUL.com spoke with Phillips and he said that he been unaware of the legal action that was filed until Thursday morning. The notice has nothing to do with the metroplex according to Phillips. The loan was for the vacant former Dillards building.
Negotiations with the bank broke down several weeks ago, according to Phillips, causing the note to mature, leaving it unpaid.
Phillips stated that he will be paying it off completely within the next couple of business days.
Phillips released a statement Friday afternoon stating that the $2.4 million loan has been completely paid off as of Friday.
