Northlake Mall, which opened in 1971, is one of the few remaining malls from that era still in operation. However, like many other malls of its time, it has had to adapt and reinvent itself due to the rise of online shopping and the impact of COVID-19. Unfortunately for Northlake Mall, these challenges have hit hard and resulted in a significant decrease in its value.
According to reports from the Charlotte Business Journal, Northlake Mall is expected to sell for only $39 million – a staggering $200 million less than what it was purchased for just over 10 years ago. In 2014, Starwood Capital Group acquired Northlake for $248 million but has since been struggling financially. The company defaulted on its mortgage payment deadline back in 2017 when it failed to pay off its loan worth $646.6 million.
As a result of this financial struggle by Starwood Capital Group,the mall went into receivership with Spinoso Real Estate Group taking over as receiver.The group recently entered into an agreement with Hull Property Group and Racine Mall as buyers for the property located at6801 Northlake Mall Drivein north Charlotte.Hull PropertyGroup’s portfolio includes malls across16 states.
Under this purchase agreement,Hull would take ownershipof not just themall,but also all structuresand improvementsonthe propertyas well asthe permits,easements,and roads associatedwithit.Additionally,the sale would include all current leases including those held by anchor tenants such as Macy’s,Belk,Dillards,and AMC Theatres.As partofthissale,Hull may choose topreserve thename “Northlakemall”for branding purposes going forward.Despite being batteredby recentchallenges,Northlakemallis poisedto enter anew chapter under new ownershipand management.
