Northlake Mall vacancy rate much higher than most malls, as its future remains in limbo
A year ago, it looked like Northlake Mall could be sold by now. That’s not going to happen, and it may take the financially troubled north Charlotte mall at least another six months to get a new owner.
What’s more, the mall has a nearly 30% vacancy rate, according to the latest status report filed in North Carolina Business Court. That vacancy rate is well above national averages, even as several new stores and a restaurant plan to open there.
Lawyers for all parties in the Northlake Mall case asked the court to “hold the case open for a further update in six months,” last Wednesday’s court filing shows.
In May 2021, the two-story, 1.1-million-square-foot mall went into receivership after failing to pay unspecified debts. Spinoso Real Estate Group of Syracuse, N.Y., maintains and operates the mall and collects rent.
Last August, a case management report said “there are no remaining issues to be resolved other than the sale of the property, which will not occur until such time that the value of the property has stabilized.”
The following month, lawyers told Special Court Judge Adam Conrad that a property sale was possible in 12 to 18 months.
“The timeline for concluding the receivership remains unknown,” according to court documents filed Aug. 3 by Melanie Johnson Raubach of Hamilton Stephens Steele and Martin, on behalf of receiver Spinoso.
Raubach did not respond for comment about the case.
K&L Gates represents the plaintiff Wilmington Trust National Association; Robinson Bradshaw & Hinson represents defendant TM Northlake; and Hamilton Stephens Steele and Martin represents the receiver.
Comparing Northlake to other shopping centers
Malls and its retailers have been hit hard by the COVID pandemic.
The decline of traditional brick-and-mortar retail, along with COVID challenges, has depressed the value of mall properties in the United States, including Northlake Mall, according to court filings.
Northlake Mall is 69.4% occupied as of June 30, the receiver said in the latest court filing. It’s the first time the mall’s occupancy rate has been shared in court documents.
On Aug. 1, Simon, the largest shopping mall owner in the U.S., said during an earnings report that its malls and outlet centers are 93.9% occupied as of June 30 compared to 91.8% a year earlier. In the Charlotte area, Simon owns three centers: SouthPark and Concord Mills malls and Charlotte Premium Outlets.
Simon’s numbers were a little above, and Northlake’s was well below, national occupancy rates. U.S. regional malls were 89% occupied in the first quarter of this year, according to Moody’s Analytics REIS data.
Other Northlake Mall updates
Despite questions about its future, Northlake is still finding some businesses eager to open there.
A seafood restaurant chain called The Juicy Crab is expected to open Aug. 15 at Northlake Mall, documents show.
The Juicy Crab, based in Georgia, has another Charlotte location at 5700 University Pointe Blvd. and also one at 3628 E. Franklin Blvd. in Gastonia. The seven-year-old company has more than 40 locations in eight Southern states.
Other store openings in the past year, according to court documents, are two CellAXS Phone Repair locations and Juicy Body Goddess, a curvy and plus-size women’s apparel shop.
Four stores have closed at Northlake Mall, including Sephora, Aerie and Loft. Starbucks also closed its kiosk but paid a $384,000 termination fee, according to the receiver’s report.
The mall’s website shows three other store openings this year: Rainbow, a clothing and accessories store for women and children; Kitokos, a Black-owned, African apparel and accessories store; and Style Hause, a vintage clothing, art, customs and collectibles shop.
And last month, Toys R Us said it will be opening at 400 Macy’s stores nationwide, including in the one at Northlake Mall, by the fall.
Meanwhile, a Florida developer sees more opportunities to connect residences to the shopping center.
The apartment developer also submitted a city rezoning request for “two multi-family residential communities to be part of Northlake Mall.” Paramount Development wants to build a maximum of 603 apartments.
About Northlake Mall
Northlake Mall, off Harris Boulevard near Interstate 77, has 114 businesses listed on its directory as of Thursday, including Apple, Dillard’s, Macy’s, Belk and AMC movie theater.
In February, anchor tenant Dick’s sporting goods store relocated to Concord Mills. And, several other stores closed during the coronavirus pandemic.
Northlake Mall was owned by Taubman Center Inc. when it opened 17 years ago. Starwood Capital investment firm bought the mall in 2014 for $248 million.
The property tax value is over $162.2 million according to tax valuation, which is under appeal, according to court documents.
This story was originally published August 8, 2022 at 5:50 AM with the headline "Northlake Mall vacancy rate much higher than most malls, as its future remains in limbo."