Judge neither approves nor denies sale of Northlake Mall in Charlotte. What’s next?

EDITOR’S NOTE: This story was updated Monday, Jan. 27, following the court hearing.

A judge on Monday neither approved nor denied the sale of financially struggling Northlake Mall in North Carolina Business Court.

After 50 minutes into Monday’s hearing at Mecklenburg County Courthouse hearing from all parties in the case and two objections to the sale, Special Superior Court Judge Adam Conrad said, “I am not going to issue a full fleshed out order today.”

Three Georgia limited liability companies — all under Hull Property Group — offered $39 million, “the highest and best offer for the property,” The Charlotte Observer first reported Jan. 16. Hull Property Group, based in Augusta, Georgia, operates 27 mall properties in 17 states, including Carolina Mall in Concord and Cleveland Mall in Shelby in the Charlotte region.

The sale requires court approval because Northlake has been under receivership with Spinoso Real Estate Group of Syracuse, New York, for nearly four years after the mall failed to pay its debts.

Conrad, who handles complex cases, said he will be “working expeditiously” to provide an answer but did not provide a time frame.

“Time kills deals,” Chris Fernandez, attorney with K&L Gates representing the mall’s lender plaintiff Wilmington Trust National Association, said in court. “The sooner the better.”

Hull Property Group owner James Hull told The Charlotte Observer after the hearing that he had hoped for a decision on Monday.

“The reason why it was important for us to close immediately is because of what the pandemic showed us, that unintended things can happen, and we would like the surety of closing,” Hull said.

The planned sale of north Charlotte mall was dealt setbacks following high-profile incidents leading to safety concerns and several store closings like Apple and Buckle.

Objections to the sale also have been filed by victims of a 2022 shooting on the mall property and a Charlotte investment firm that says the sale was not properly advertised and the price is “woefully inadequate.”

Northlake’s financial struggles

The mall opened in 2005 and was sold nearly a decade later for $248 million to Investment firm Starwood Capital Group. But the two-story, 1.1-million-square-foot mall fell into receivership in 2021 after failing to pay its debts.

Starwood Capital Group defaulted on a loan tied to four malls, including Northlake, for nearly $647 million.

In 2021, Spinoso Real Estate Group of Syracuse, New York, was named receiver. Spinoso has maintained and operated the mall to prepare it for sale.

Spinoso officials increased security measures in 2023 following several shootings at Northlake Mall. That year, Spinoso also sued some tenants like American Eagle for leaving.

In October, real estate firm JLL began marketing the mall for sale to 11,344 potential buyers and real estate contacts, court filings show. The sale generated 5,699 prospective purchasers and more than 54 potential buyers signed confidentiality agreements to further review a potential deal.

JLL conducted three rounds of sealed bids and buyer interviews, court records show. Northlake property is being sold “as-is” with the sale and transfer of the property “free and clear of liens.”

Objections to the sale

The court also fielded two objections to Northlake’s sale.

Victims of a 2022 shooting on Northlake Mall property are suing the mall, its receiver and security firm. Lawyers for Bianca Brown and the estate of Armani Spencer said in the objection filed Jan. 16 that the “fire sale” of the mall would impair their ability to recover a judgment.

On Jan. 22, Ryan Investment Group, a retail and commercial real estate firm with over 15 years in the Charlotte area also opposed the sale. It objected to the purchase price being too low, even in its distressed condition, and the accelerated sale approval in less than 30 days of due diligence.

JLL did not provide general notice of the mall sale in publications and advertisements, Ryan Investment said in its objection to the sale. Instead, JLL “engaged in generally non-descript targeted marketing efforts” resulting in a limited number of purchase offers, Ryan Wildrick of Ryan Investment Group said in an affidavit.

“I was surprised to learn that the mall was marketed for sale without our knowledge and even more surprised to learn that it was under contract,” Wildrick said in the affidavit. Wildrick said other local real estate investors and developers were also caught unaware until after the contract was signed.

Ryan Investment is interested in acquiring Northlake Mall, Wildrick said, subject to a complete review and evaluation of material and financial information.

Ryan believes the sale price of $39 million is “woefully inadequate, as it represents only 24% purchase price for the mall based upon the current tax value of $162 million and less than 50% of the current appraised value of the asset,” the sale objection states.

Ryan Investment “anticipates that it will offer to purchase the mall for an amount of excess of the current price reflected in the sale agreement,” the objection filed by attorneys Randolph James and Burton Law Firm states.

More about the mall

Northlake Mall is off Harris Boulevard near Interstate 77 in north Charlotte.

In 2005, Taubman Center Inc. opened Northlake Mall. Starwood Capital investment bought the mall for $248 million in 2014.

Northlake Mall sits on nearly 56 acres. Its last tax appraised value in 2024 was for $91.5 million, Mecklenburg County property records show. The building is the majority of the value at $77.8 million.

Stores at the mall include Dillard’s, Macy’s, Belk Outlet and AMC movie theater. Many small, locally owned shops also operate at the mall.

The last county reevaluation in March 2023 for Northlake Mall was $134 million, property records show.

And on Jan. 7, a “purchase and sale agreement” was signed by Hull Property group.

This story was originally published January 27, 2025 at 5:43 AM.