Northlake Mall sale pushed back to next year. Safety concerns part of reason for delay
Financially troubled Northlake Mall won’t be listed for sale until at least next year as security concerns and interest rates “chill” sales opportunities, lawyers working to sell the site officials said Monday.
It’s been two years since the mall went into receivership in May 2021 after failing to pay its debts. Spinoso Real Estate Group of Syracuse, N.Y., maintains and operates the mall, and collects rent.
The north Charlotte mall has had several security incidents that impacted the “market perception” and its stability, Spinoso attorney Melanie Johnson Raubach said.
Between December to February, Northlake mall saw three shootings in less than three months, alarming shoppers, and store employees and owners. The high-profile Apple abruptly closed soon after the last of those incidents.
Spinoso plans to continue to work to stabilize the property for another six to nine months and promote the mall’s increased security measures, Raubach said. Early next year, Spinoso will re-evaluate “what the right time is to put the property on the market,” she added.
Rising interest rates, the pandemic and a challenging market nationwide also have slowed the process, said Chris Fernandez, K&L Gates lawyer representing plaintiff Wilmington Trust National Association.
“That outlook has been murky, and I think that may have chilled some of the marketing prospects,” Fernandez said. The pool of buyers for suburban mall properties is small, he said.
Monday’s status conference in North Carolina Business Court was held at the request of Special Superior Court Judge Adam Conrad. The court handles complex business litigation cases.
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. However, all parties in the case agreed the value of the property needed to be stabilized before a sale could happen.
There had been no talks of a sale until Monday for two-story, 1.1-million-square-foot mall.
Security at Northlake Mall
In January, Spinoso said it had completed five new tenant deals making up $454,497 in revenue with 15 tenants renewing leases, including Apple and American Eagle. However, in March, the Apple store closed after the spate of shootings at the mall.
Apple store abruptly closes at Northlake Mall, in latest blow to struggling NC site
Since then, the mall has increased security measures including:
▪ Pay raises for off‐duty police, and adding police shifts
▪ Adding a firearm-detecting dog
▪ Installing monitors at entrances and high‐traffic areas
▪ Adding blue strobe lights to exterior security cameras
▪ Installing a license plate tag reader tied to Charlotte-Mecklenburg Police Department
Initial feedback about the new safety measures has “increased a feeling of safety and protection” for shoppers and tenants at the mall, Raubach said.
Northlake Mall occupancy rate
Tenant occupancy rates as of March 31 was 71% up from 68% the prior year, according to the last court status update in May. Two new deals in draft stage at the time totaled 72,812 square feet, including a gym anchor at the former Dick’s Sporting Goods location, and would generate $986,000 in revenue, according to the report.
The national mall occupancy rate average is 89%, according to Moody’s Analytics REIS data. Raubach said on Monday that an unofficial report shows occupancy right now is greater than 80%.
There are 106 retailers listed Monday on Northlake Mall’s website. Last week, AMC Northlake 14 movie theater closed temporarily because of air conditioning issues. It’s unclear when the theater will reopen.
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