West Dundee Nears $7M Mall Purchase for Repositioning

The final puzzle piece is falling into place for West Dundee to perform a major overhaul of a deserted shopping center in the northwest suburb.

The village, which has been purchasing portions of the Spring Hill Mall over time from Kohan Retail Investment, is poised to acquire the core of the mall and its movie theater for $7 million, the Daily Herald reported.

After months of negotiations, New York-based Kohan ultimately determined that the village was better equipped to renovate the property.

“The city is going to be able to do 10 times what we’d be able to do,” company president Mike Kohan told the outlet. “We’re mall people; we’re not developers.”

West Dundee trustees are scheduled to vote on the matter on Monday, Oct. 23. The village expects to close on the property in early 2024, assuming they vote in approval of the sale.

Spring Hill Mall, situated on the border of West Dundee and Carpentersville, has faced dwindling occupancy rates in recent years, primarily due to the closure of key anchor stores Macy’s and Sears. West Dundee has already acquired the former Sears store for $2 million and is expected to finalize a deal to purchase the vacant Macy’s building for $1.25 million in November.

West Dundee has been wanting to take control of the site with the goal of redeveloping it for additional uses, such as housing and entertainment. Several high-profile shopping mall redevelopments are in the works in the Chicago-area, largely because the pandemic triggered an increase of online shopping — which was already a threat — while stay-at-home orders diminished foot traffic to put the nail in the coffin for some assets.

Kohan also noted that the remaining tenants have been placed on month-to-month leases, and the mall is expected to remain open through the end of the year. The purchase of the mall excludes the Kohl’s store located in Carpentersville, and the Cinemark theater within the mall is anticipated to remain operational.

To incentivize developers, West Dundee trustees established a new tax-increment finance district, which would redirect property tax funds toward the mall’s redevelopment. By taking ownership of the mall, West Dundee gains control over future land use, ensuring that any development aligns with the community’s standards, said village president Chris Nelson.

— Quinn Donoghue