Overdue Bills Cause Power Outage at Kohan Mall Near Atlanta

Kohan Retail Investment Group’s financial instability has cast a shadow over a suburban shopping mall northwest of Atlanta.

The Town Center at Cobb, spanning 92 acres between interstates 75 and 575 in Kennesaw, closed temporarily after Georgia Power turned off its electricity Tuesday, citing the New York investment firm’s failure to pay its overdue bills, despite an extended grace period, the Atlanta Journal-Constitution reported.

Power to the 1.3 million-square-foot mall was restored after the company, led by founder Mike Kohan, met the utility company’s requirements. The mall’s website confirmed the reopening at 11 a.m. Wednesday.

Georgia Power reported that it had worked with Kohan for several months and offered multiple solutions to prevent disconnection. The decision to cut power was ultimately confirmed after a lengthy overdue period, with the utility stressing that customers with outstanding bills impact all of its customers.

While the commons area and concourses were closed and without power, the mall’s anchor stores, including Macy’s, JCPenney and Belk, were unaffected and remained open because they have separate entrances and their own contracts with the power provider.

The area surrounding Town Center has seen significant development, with residential development and the Town Center CID working to support affected businesses.

Kohan bought the 1.3 million-square-foot mall for $71 million ($55 per square foot) in 2023 after its previous owner, Simon Property Group, defaulted on a loan from Deutsche Bank.

The mall’s struggles echo issues faced by other Kohan-owned properties, including five power shutoffs at a mall in Kansas last year.

To address declining foot traffic at Atlanta-area shopping malls, local officials have begun encouraging their redevelopment into mixed-use communities.

Branch Properties, for instance, plans to revitalize Gainesville’s Lakeshore Mall into a mixed-use development with 305,000 square feet of retail space, 650 apartments and 38,000 square feet of green space. The addition of a hotel or townhomes on the 49-acre site is also being considered.

— Andrew Terrell