Hull Property Group has reached a $39 million agreement to purchase the distressed Northlake Mall from its receiver, after a prolonged period of financial struggles for the property.
The Georgia-based developer will pay $37 per square foot for the two-story mall at 6801 Northlake Mall Drive, a significant discount from the $234 per square foot that Starwood Capital Group paid over a decade ago, the Charlotte Business Journal reported.
Starwood bought the 1.06 million-square-foot mall for $248 million in 2014, but struggled with vacancies and an inability to meet financial obligations.
The firm, headed by Chairman & CEO Barry Sternlicht, defaulted on a $646.6 million loan tied to four malls. Northlake Mall was placed under receivership by Spinoso Real Estate Group in 2021.
The sale to Hull Property Group, led by managing principal James Hull, represents the culmination of an extensive marketing process overseen by JLL.
The developer is acquiring the interior mall, as well as anchor buildings, including Macy’s, Belk and Dillard’s.
The value of suburban malls are declining nationwide, largely due to reduced demand and lack of foot traffic. The average closing price per square foot for malls sold in the U.S. was $83 in the second quarter, down 21 percent from the third quarter of 2022.
Hull Property Group’s portfolio includes several shopping centers across the U.S., including properties in North Carolina.
Spinoso Real Estate Group, which has been managing Northlake Mall since 2021, has worked to improve the property’s performance during its receivership, overseeing daily operations, managing rent collections and securing new tenants.
The $39 million purchase agreement is expected to close shortly after the court confirms the transaction.
— Andrew Terrell
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