JOHNSTOWN, Pa. – The Johnstown Galleria is for sale.
A sheriff sale including the mall is set for 9:30 a.m. Friday at the Cambria County Courthouse in Ebensburg. The bidding starts at a foreclosure judgement amount of $15.4 million.
The sale of the Galleria has been postponed repeatedly since the Cambria County Court of Common Pleas issued a mortgage foreclosure judgement for the mall in August 2020. As of Thursday, the mall at 500 Galleria Drive was still on the list of properties to be sold, but that can change any time up to the sale at 9:30 a.m.
Previous cancelations came at the request of the mall’s creditor, U.S. Bank National Association.
Attorneys with the creditor’s legal counsel, Buchanan Ingersoll & Rooney, of Pittsburgh, said this week they were not allowed to speak with the press. Some information about the previous postponements is in court documents filed by the firm.
After exhausting the right provided by state law to postpone the sheriff sale on two occasions, U.S. Bank National filed for a special order of the court to postpone again in March of this year. Court documents for that postponement show the creditor needed more time for “due diligence with respect to the property.”
Another postponement was subsequently made in June, which led to Friday’s scheduled sale.
Constructed in 1992 by local real estate developer George Zamias, the Galleria was bought and sold several times while remaining under management of Zamias Services.
The Galleria’s Florida-based owner, ADAR Johnstown, LLC, assumed the mall’s mortgage in 2014. In late 2019, creditors initiated legal action to take the mall from ADAR and replace Zamias Services with a court-appointed receiver to manage the mall.
The mall has been managed by Spinoso Real Estate Group since February 2020.
A month after Spinoso stepped in, COVID-19 hit and the mall temporarily closed from March 19 through June 5 due to the pandemic.
From the start of 2020 through June of that year, sales of all Galleria tenants were down by more than 50% compared to 2019, shows a Spinoso financial report filed with court documents the past year.