Plaza Mariachi
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Plaza Mariachi is moving forward with a plan to sell off its exterior shops to pay off more than $10 million in debt.
When First Financial Bank initiated foreclosure proceedings against Plaza Mariachi in early June, the future of the beloved Nolensville Pike institution, which has been a center for Nashville Latino culture and commerce since its opening in 2017, became uncertain. A month later, on the eve of the scheduled foreclosure, Plaza Mariachi filed for bankruptcy, staving off foreclosure proceedings and buying time to work out the business’s financials.
More than a month into bankruptcy proceedings, an image of Plaza Mariachi’s future is beginning to materialize.
On Monday, Judge Charles Walker approved Plaza Mariachi’s application to hire a real estate broker as part of the business’s plan of reorganization. The intent is to sell off the exterior properties of Plaza Mariachi, dubbed “The Shops at Plaza Mariachi,” which currently is home to a number of businesses — from Little Caesars to a dry cleaner to T-Mobile. Plaza Mariachi itself, consisting of event spaces, a radio station and several shops and restaurants, would not change hands.
The move comes on the eve of a scheduled foreclosure on the property
According to bankruptcy court filings, Plaza Mariachi owes First Financial Bank $8.2 million and Capital One $6.6 million. Plaza Mariachi’s application says that before bankruptcy proceedings, it had already been working with the broker on this plan, and had received “significant interest and a number of offers” on a list price of $12.5 million after being on the market for only two weeks.
Plaza Mariachi’s pitch is that the sale of the exterior shops would net enough to pay off First Financial Bank and some smaller tax-related debts. This would leave only the Capital One debt, which Plaza would be able to make a significant down payment on before working out a new financing plan to pay off the rest.
South Nashville Latino culture hub's property owner has seen federal fraud charges
Attorneys for Plaza Mariachi tell the Nashville Banner that future events such as the Mexican Independence Day celebration, which is Plaza Mariachi’s most significant event and uses the entirety of the parking lot, would not be affected by the sale of The Shops at Plaza Mariachi and would go on as usual.
Despite its tenuous financial situation, the site has continued to host hundreds of people from across the city every night for soccer game watch parties, salsa dancing and a wide array of other events. The liveliness of the space would cause anyone to question how it could be in bankruptcy.
Mark Janbakhsh bought the building, formerly home to a Kroger, for $1.9 million in 2013. But at the same time he was developing what would become Plaza Mariachi, Janbakhsh was also the majority owner and CEO of the Tennessee car dealership chain Auto Masters. He and Steven Piper, the CFO, allegedly defrauded banks for millions of dollars, some of which went toward the development of Plaza Mariachi. Janbakhsh was indicted on 18 counts of fraud in 2022. That case was set to go to trial in June but was recently postponed and has not yet been rescheduled.
