One of Charlotte’s main malls likely to be sold, court records show. Here’s what’s next
Northlake Mall in Charlotte is likely headed for sale, according to the latest court documents involving the financially troubled shopping center.
The two-story, 1.1-million-square-foot mall went into receivership in May after failing to pay its debts, the Observer previously reported. The documents don’t specify the amount of the debt payments. The receiver manages and operates the property and collects rent, according to the lawsuit.
On Tuesday, a case management report filed by all parties involved in the case in North Carolina Business Court said they all believe it’s in the best interest to continue operating the mall until its “value has stabilized.”
The case was assigned from Mecklenburg County Court to the state business court June 29, records show. The Business Court handles complex business litigation.
The mall generates “sufficient revenue to pay trade creditors,” the report said. However, brick-and-mortar retail and COVID-19 challenges have “depressed the value of mall properties” across the country, including Northlake, the report said.
The receiver, Spinoso Real Estate Group of Syracuse, N.Y., will continue to maintain and operate the mall until it can be sold, the report said.
There are no other issues that need to be resolved other than the sale, according to the report.
The joint case management report was filed by K&L Gates, representing the plaintiff Wilmington Trust National Association; Robinson Bradshaw & Hinson, representing defendant TM Northlake; and Hamilton Stephens Steele and Martin, representing the receiver.
The only motion pending before the court is for the receiver to take over unexpired leases, according to the report.
TM Northlake Mall — affiliated with Starwood Capital Group, which purchased the mall seven years ago — defaulted on its property loan in November 2019 and has failed to make debt payments, the Observer previously reported. Three other malls owned by Starwood in Florida, Michigan and Virginia, combined with Northlake, were issued loans for $725 million in fall 2014, documents show.
A case management hearing has been scheduled for Sept. 14 by Special Superior Court Judge Adam Conrad, court records show.
More about Northlake mall
Northlake Mall, which opened in 2005, was purchased by investment firm Starwood Capital in 2014 from original owner Taubman Center Inc. for $248 million.
This year, the mall lost anchor tenant Dick’s sporting goods store, which relocated and opened in February at Concord Mills, a Simon mall. Other store closings during the coronavirus pandemic included Lane Bryant.
Northlake Mall stores include Apple, Dillard’s, Macy’s, Belk and AMC movie theater, but many stores remain shuttered with only 111 stores and restaurants listed on its directory.
The mall is in north Charlotte off Harris Boulevard near Interstate 77.
This story was originally published August 26, 2021 at 6:30 AM.