The unlikely source of objections to Northlake Mall’s pending $39 million ‘fire sale’

A motion to stop the “fire sale” of financially struggling Northlake Mall has been filed by victims of a 2022 shooting who are suing the north Charlotte shopping center.

Three Georgia limited liability companies, all under Hull Property Group, were the highest bidders to purchase Northlake Mall for $39 million, court documents signed Jan. 7 show, The Charlotte Observer reported last week. The mall opened in 2005 and was sold nearly a decade later in 2014 for $248 million before it fell into receivership in 2021.

Lawyers for shooting victims Bianca Brown and the estate of Armani Spencer say the sale would impair their ability to recover a judgment against Northlake Mall and its receiver Spinoso, as well as its security firm Professional Security Consultants, a Jan. 16 filing in North Carolina Business Court states.

The $39 million sales price is “a far cry” from the 2014 sales price, even with the hurdles faced by shopping malls in recent years, the lawyers stated in the objection.

The two-story, 1.1-million-square-foot mall was valued at $91.5 million last year, according to Mecklenburg County property records.

The proposed sale is essentially “a fire sale,” attorneys for Brown and Spencer’s estate said in their motion.

“The proposed sale price is insufficient because it appears likely to generate only enough funds to pay off the lender and is far below the mall’s assessed value,” attorneys Robert Jessup and Matthew Langston of Howard Stallings Law Firm in Raleigh said in their objection.

The sale would leave “no real assets and insufficient funds” to pay off claims against it, according to the objection.

“As a result, the interested parties and other claimants may be left with worthless judgments against the receivership unless funds are set aside to satisfy the claims,” the filing states.

Spencer’s estate and Brown are asking the court to deny the mall’s sale or delay the sale until there are assurances creditors will be able to recover their claims.

All responses and objections to approve Northlake Mall’s sale must be filed by 5 p.m. Wednesday, Jan. 22. A court hearing to approve the sale is set for Monday, Jan. 27, at Mecklenburg County Courthouse.

Behind Northlake Mall’s pending sale

In 2021, Northlake Mall fell into receivership after failing to pay its debts. Spinoso, of Syracuse, New York, has maintained and operated the mall, and collects rent.

The north Charlotte mall’s sale has been delayed following high-profile incidents leading to safety concerns and several store closings like Apple and Buckle. Spinoso officials added security measures and sued some tenants like American Eagle for leaving.

Remaining stores and venues include Dillard’s, Macy’s, Belk Outlet and AMC movie theater. As several national retailers abandoned the site, an influx of locally-owned small businesses, have opened.

In October, real estate firm JLL listed the mall for sale, receiving more than 54 potential buyers.

Hull Property Group was founded in 1977 by James M. Hull and is one of the largest privately-owned retail real estate companies in the U.S., according to the company’s website.

Based in Augusta, Georgia, Hull Property Group operates 27 mall properties in 17 states. Six malls are in North Carolina, including Carolina Mall in Concord and Cleveland Mall in Shelby in the Charlotte region.

The group operates 10 shopping centers, including Albemarle Crossing in North Carolina. The company also has been tied to development of shopping centers and other properties in the Charlotte region, like AMC Theatres in Shelby and Staples in Concord.

Hull Property Group declined to comment. Spinoso officials have not responded to repeated requests for comment.

Behind the estates’ lawsuits against Northlake Mall

Brown and the estate of Spencer say the two friends were “innocent victims” of an Aug. 13, 2022, shooting on Perimeter Parkway after an unknown shooter fired nearly two dozen times into their car, the Observer previously reported.

The parkway, which divides Northlake Commons shopping center and Northlake Mall, is owned by the mall, according to the lawsuit.

Spencer, 23 and a father of three children, was shot multiple times and died at the scene. Brown, then 27, a nurse and mother, was shot more than 10 times and suffers “scarring, disfigurement and loss of normal use of her body.”

Northlake Mall security did not respond or call 911, but Brown called for help while injured, according to the lawsuit. The lawsuits claim Northlake Mall, Spinoso and its security firm should be liable for negligence and failure to provide adequate security on the premises. Northlake Commons and its security agency also are named in the lawsuits.

Spinoso and other defendants, including mall security firms, have asked to be removed from the lawsuits. Separate lawsuits for Brown and Spencer were filed in July in Mecklenburg County Clerk of Superior Court, and moved to North Carolina Business Court in November.

This story was originally published January 22, 2025 at 5:57 AM.