Latest update on Northlake Mall sale, vacancy rate concerns detailed in court records

Troubled Northlake Mall won’t have a new owner any time soon.

For the second time in six months, lawyers for all parties in the Northlake Mall case asked a judge in North Carolina Business Court to “hold the case open for a further update in six months,” according to the latest status report filed with the court. It hears complex business litigation cases.

The mall has had other problems, too, including two recent shootings, the latest one just last weekend.

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.

“The timeline for concluding the receivership remains unknown,” Melanie Johnson Raubach of Hamilton Stephens Steele and Martin, representing Spinoso, said in court documents filed Jan. 25. Raubach did not respond to requests for comment by The Charlotte Observer.

Since August 2021, court reports show there were no remaining issues to be resolved other than the property sale, which was possible within 12 to 18 months, The Charlotte Observer reported at the time. However, all parties in the case agreed the value of the property needed to be stabilized.

Over the last six months, tenant occupancy has increased just 2.6% to nearly 74%, the latest court report shows. That’s still well below the national average of 89%, according to Moody’s Analytics REIS data from last year.

By comparison, during its fourth-quarter earnings report on Monday, mall owner Simon reported an annual occupancy increase of 1.5% to 95% as of Dec. 31, 2022. Simon owns three centers in the Charlotte area: SouthPark and Concord Mills malls, and Charlotte Premium Outlets.

At Northlake, Spinoso has completed five new tenant deals making up $454,497 in revenue with 15 tenants renewing leases, including Apple and American Eagle.

Four more lease renewals are underway, plus two new deals that are in draft status, including Fitness Connection for 70,000 square feet, which combined add $1.06 million in revenue, court documents show. The Texas-based gym chain has three Charlotte-area locations, including one over a mile away at 8626 Hankins Road.

One tenant, Great American Cookies, closed last year and paid $14,284 in annual rent for a 600-square-foot space, the filing shows.

K&L Gates represents the plaintiff Wilmington Trust National Association; Robinson Bradshaw & Hinson represents defendant TM Northlake.

Other Northlake troubles

But financial woes aren’t the only problems plaguing the northeast Charlotte shopping center.

On Sunday, the mall was evacuated and closed early after a dispute between two people ended in gunfire at about 2 p.m. There were no reports of anyone injured from a gunshot wound. On Monday, CrimeStoppers circulated photos of three suspects involved in a shooting incident.

Less than two months ago, the mall was closed early after a fight between two people ended in gunfire. Two people were shot, including a bystander. Three people were arrested.

In March 2021, a juvenile was charged with the attempted murder of another youth following a shooting inside the mall.

However, an Observer data analysis in January 2020 of the four major malls in the region — Carolina Place, Concord Mills, Northlake and SouthPark — showed crime has dropped overall since 2017.

What’s new at Northlake Mall?

Several new stores have recently opened, with more planned.

New stores include Custom Place, which makes custom T-shirts, hats and hoodies; Designers Closet, a streetwear apparel store; Lovisa, jewelry and accessories; and Noa Living interior design and decor shop.

Super Icy Brothers, an Italian ice and alcohol-infused Italian ice shop, and Hot Tamale, a Mexican restaurant, are planned, according to Northlake’s online directory.

Last year, “Conn’s x Belk” concept debuted at five Belk stores, including in Northlake Mall. The shop-in-shop concept is a partnership with Texas-based furniture store Conn’s and the Charlotte-based department store Belk.

Mall officials did not respond for comment about the new stores or case updates by Tuesday morning.

More about Northlake Mall

Northlake Mall, off Harris Boulevard near Interstate 77, has 117 businesses listed on its directory as of Tuesday, including department stores Belk, Macy’s and Dillard’s, as well as AMC movie theater.

Northlake Mall opened 18 years ago. In 2014, owner Taubman Center Inc. sold the mall to Starwood Capital investment firm for $248 million.

The retail center complex also remains appealing to a Florida developer. Paramount Development wants to build a maximum of 603 apartments for “two multi-family residential communities to be part of Northlake Mall.”

CLARIFICATION: This story was updated on Feb. 8 to clarify the status of the fitness center’s deal at the mall.

This story was originally published February 7, 2023 at 10:14 AM with the headline "Latest update on Northlake Mall sale, vacancy rate concerns detailed in court records."