JOHNSTOWN, Pa. – The Johnstown Galleria was sold to its creditor, U.S. Bank National Association, at a Cambria County sheriff’s sale Friday.
The first bid started at the sheriff’s department costs of setting up the sale – $238,718. No other bidders engaged; otherwise, the legal counsel for U.S. Bank National likely would have kept the bidding going toward the foreclosure judgment amount of more than $15 million.
The Galleria’s Florida-based owner, ADAR Johnstown LLC, assumed the mall’s mortgage in 2014. U.S. Bank National put the mall in receivership in February 2020, with foreclosure following in August that year.
Kelly M. Neal, legal counsel at the sale for U.S. Bank National, declined to speak about the next possibilities for the Galleria.
Sheriff’s department solicitor Suzann Lehmier said that when banks buy the same property that they put up for sale, they may attempt to recover the mortgage debt owed to them by selling it at fair-market value.
A fair-market value for the Galleria was not immediately available Friday. ADAR did not provide the county with a real estate appraisal of the Galleria earlier this month, though it sought a lower tax assessment, Cambria County Chief Assessor Barry Segear said.
With a current tax assessment value of more than $3 million, the Galleria’s annual real estate taxes are more than $123,000 to the county, more than $183,000 to the Richland School District and more than $33,000 to Richland Township.
Without an appraisal, ADAR’s attempt to lower the Galleria’s tax assessment was denied, Segear said, adding that ADAR has 30 days to appeal to the Court of Common Pleas.