Crystal Mall is being sold next month
Apr. 28—WATERFORD — Crystal Mall is up for auction.
Bidding is set to start May 15 at $2 million, according to an online listing with Crexi, a commercial real estate exchange that says the 39-year-old, two-level shopping complex on Route 85 comprises some 535,500 square feet of space on more than 82 acres.
The property up for sale does not include spaces formerly occupied by Macy's and Sears, one-time mall anchors that departed in 2021 and 2018, respectively.
The vacant former Sears location, owned by Seritage Properties, is up for sale in a separate, unpriced listing. The former Macy's space, also vacant, is owned by CRJ Waterford, an entity with a Brentwood, Tenn., address, which bought it in 2021 for $4 million.
"We knew the one big piece was up for sale," Jonathan Mullen, Waterford's planning director, said Friday. "We want something good to happen there. We don't like the way it is now."
Mullen said the town talked to various parties interested in the property but received no concrete proposals. He said the town would like to see the mall converted to a mix of retail, residential and commercial/office uses.
"We're open to that," Mullen said. "We don't want it to be any one use."
Avison Young, the commercial real estate company handling the sale of the former 10.6-acre Sears location, which includes a vast parking lot, says the existing structure could be "easily re-tenanted for another retail use" while the entire site could be reimagined as "a mix of apartments, senior living, hotel, entertainment, structured parking or other options proposed by developers."
The mall has two remaining anchors ― JCPenney and the Christmas Tree Shops, which used to share space with a Bed, Bath & Beyond store that closed last year ― a smattering of other chain and local outlets and a food court.
According to the Crexi listing, the mall's occupancy rate is 64%.
Pete's RV Center and Fluid Trucks, an outfit that rents commercial vehicles, currently have RVs and vans parked in mall parking areas.
Jones Lang LaSalle, retained as exclusive adviser for the mall auction, will provide tours of the property upon request.
According to data provided by Paige Walton, Waterford's assessor, the five parcels that make up the main mall property have most recently been assessed at $29.3 million. Two freestanding restaurants near the mall, Olive Garden and LongHorn Steakhouse, have been assessed at $740,000 and $752,200, respectively.
The former Sears location has been assessed at $3.1 million and the former Macy's space at $2.8 million.
Crystal Mall thrived for a time after opening in 1984, and was acquired in 2012 by Simon Property Group, which financed the purchase by obtaining a $95 million loan. The loan holder foreclosed on the property last year when Simon and its partners were unable to pay the balance of the loan, which came due. Ownership of the mall reverted to Rialto Capital, an investment management company.
The mall is managed by Spinoso Real Estate Group, based in Syracuse, N.Y. An employee there said the company had no comment on the mall's status.
