Bemberg Shopping Center goes on auction block

Photo by Dave Boyd The 13.28-acre Bemberg Shopping Center property is scheduled to be auctioned next month.

By Thomas Wilson
The Bemberg Shopping Center property on West Elk Avenue has gone on the auction block, according to a property foreclosure notice issued on Sept. 22.
The 13.28-acre property is scheduled for auction to the highest bidder on Oct. 24 at 11 a.m. The foreclosure notices reads that the property's current owners -- Seville Properties I, Ltd. of 5303 Legends Drive, Braselton, Ga. -- has defaulted on its mortgage.
"It is a full foreclosure auction," said David Cole of Cole Auctions in Kingsport, which will conduct the auction.
The shopping center has 118,000 rentable square feet, including two out parcels, and room for more tenant space to be built, according to the Cole Auctions Web site, which also states that the property is currently generating good income and brings a lot of potential income to a new owner. The 13-acre tract provides more than ample parking and room for expansion of rentable space, in an area where traffic is heavy (approx. 32,000 per day) and vacant space is hard to find. A new survey is being performed and will be available soon.
Current shopping center tenants include White's Stores, AutoZone, the Salvation Army Thrift Shop, EZ Rentals and the It's Only A Dollar store. Amigo Mexican Restaurant and the Medicine Shoppe pharmacy presently lease the two out parcels. The foreclosure notice lists indebtedness presently held and owned by First Tennessee Bank.
Terms of sale listed for potential buyers require $100,000 in certified funds to register and bid, refundable if you are not the successful bidder. If a successful bidder wins the auction, the buyer's funds will be deposited in the trustee's escrow account and held there until closing (within 15 days of the sale), at which time the funds will be applied to the purchase price. The foreclosure notice states that all property is conveyed "as is, where is, as inspected, day of sale", with no warranties or guarantees of any kind given or implied by the seller, the auctioneer, or the auction company.
The foreclosure notice was issued by the law firm of Baker, Donelson, Bearman, Caldwell and Berkowitz. Richard B. Gossett has been duly appointed as Successor Trustee to conduct the foreclosure sale.
According to the property's lease roll, just over 73,000 square feet is rented with over 45,000 square feet of space listed as vacant. The last recorded annual total rent of the property was $308,798.64.
According to deed records, Seville Properties acquired the tract in 1982. The company bought a portion of the property from Activated Metals & Chemicals, Inc. for $656,400 via special warranty deed and another tract from Haynes Elliott and his wife for $40,000 in 1982. The property acquired from Elliott and a separate tract is not included in the auction, according to the foreclosure notice.
The auction company advises prospective purchasers to personally inspect the premises prior to the auction to determine the square footage and condition of the premises as indicators for their level of interest in purchasing the property.