Simon Property Group is going after the developer of the former Sears property at the Town Center at Boca Raton.
Simon Property Group, which owns the mall, alleges that Seritage Growth Properties, the real estate investment trust that was created to invest and redevelop Sears-anchored properties, violated the terms of the contract between the two parties. Seritage owns the parcel at 5900 West Glades Road.
The suit alleges that the contract signed between the mall and Sears in 1985 gave the mall the first opportunity to buy the property if it no longer served as a retail space, according to the South Florida Business Journal. It also gave the mall the right to an appraisal, the lawsuit alleges.
But Simon Property is alleging Seritage still has not had the property appraised. Seritage wants to build 239,000 square feet of retail, restaurant and entertainment space, as well as a hotel with up to 170 rooms. The complaint alleges that Simon has the right to make an offer to purchase the property if Seritage used it for non-retail uses.
Sears filed for bankruptcy protection in 2018 after years of losses, in part due to rising competition from e-commerce. Since then, the company has been propped up by billionaire owner Eddie Lampert and his hedge fund ESL Investments. [SFBJ] – Keith Larsen