Judge approves $39M sale of struggling Northlake Mall. What’s next for Charlotte site?

The sale of Northlake Mall for $39 million has received approval from a North Carolina Business Court judge.

On Friday, Special Superior Court Judge Adam Conrad granted Spinoso Real Estate Group its motion to “consummate the proposed sale” to Hull Property Group. The August, Georgia, firm also owns Carolina Mall in Concord and Cleveland Mall in Shelby.

The decision came four days after a 50-minute hearing Monday in Mecklenburg County Courthouse from all parties in the case and two objections to the sale. The sale of a receivership property requires court approval.

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.

“Following completion of the sale transaction, Spinoso shall file a notice with the court that the sale has closed,” Friday’s order stated.

And on Jan. 7, a “purchase and sale agreement” was signed by Hull Property group, including a $5 million deposit with no due-diligence period.

The contract also included a 10-day window after court approval to complete the closing.

Spinoso and Hull Property Group officials did not immediately respond to requests for comment Friday. Attorneys with Robinson, Bradshaw & Hinson in Charlotte did not respond for comment. An attorney with K&L Gates with offices in Charlotte and Raleigh representing Wilmington Trust, Northlake Mall’s lender, declined comment.

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 saying the $39 million price was “woefully inadequate” and Spinoso’s marketing campaign was not thorough. Ryan Investment was interested in acquiring Northlake Mall, subject to a complete review and evaluation of material and financial information.

”Neither objection to the proposed sale is compelling,” Conrad said in Friday’s order.

He overruled both objections. “The proposed sale is reasonable, supported by a sound business justification, and in the best interest of the receivership estate,” Conrad said.

Both the plaintiff and defendant endorsed the proposed below-market sale and their endorsements “carry substantial weight,” Conrad said.

Addressing Ryan Investment, Conrad said the receiver, its broker and the senior secured creditor all agree that the sale price is reasonable given current market conditions, the order states. “There is no reason to second guess the receiver’s judgment,” he said.

Addressing Brown and the Spencer estate, Conrad said, “There is no realistic scenario in which a sale of the mall would yield enough money to pay all creditors of the estate.”

The court does not decide whether those claims are valid or if they are entitled to recovery in any amount.

“Those are questions for another day,” Conrad said.

Northlake Mall tenant uncertainty

Since last month, Northlake Mall has seen several national retailers leave.

Spencer’s Gifts moved across the street to Northcrest Shopping Center in December. Just last week, apparel retailers Vans and Aldo also closed.

“It’s a lot of uncertainty for a lot of people,” Danyell Butler, co-owner of Modified Kicks said Friday.

Butler’s custom sneaker shop opened a year ago at Northlake. The store also offers sewing, embroidery and printing technique classes. Modified Kicks lease runs through next year, Butler said.

He’s hopeful the new owners will bring positive change and eventually, stability, to the mall. “I do think there’s a lot of good things that can happen with this mall,” Butler said.

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.

About Hull Property Group

Hull founded Hull Property Group in 1977. It’s one of the largest privately-owned retail real estate companies in the U.S., according to the company’s website.

Hull Property’s portfolio includes operating 27 malls with almost 20 million square feet in 17 states, according to the company.

Hull Property also operates 10 shopping centers, including Albemarle Crossing in North Carolina.

This story was originally published January 31, 2025 at 2:09 PM.