Rushmore Mall facing foreclosure after $100M in unpaid loans

Rushmore Mall in Rapid City is facing foreclosure because of $100 million in unpaid loans.

In May, the company who owns the mall, SM Rushmore Mall LLC, defaulted on its payments.

In addition to financial issues, the mall recently lost Sears and Fuddruckers, and Herberger’s is set to close. Rushmore Mall will be left with two vacant anchor store spots. 

According to court documents obtained by NewsCenter1, lawyers with Wells Fargo asked a judge to foreclose the Rushmore Mall so they could collect the $100 million. If the judge approves the foreclosure, then Wells Fargo will collect rent from the some 100 tenants until a new owner is found. 

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The 13-acre property will now go into receivership.

A hearing between lawyers from Rushmore Mall and Wells Fargo will be held on July 26. Rushmore Mall’s parent company, Washington Prime Group, declined to comment.