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Northgate Mall, one of the region's largest shopping destinations, has been sold to a Long Island real estate investment trust for $110 million, the buyer announced Monday.
Feldman Mall Properties, which bills itself as a turnaround investor, said it will pay $30.4 million in cash and assume the existing $79.6 million mortgage for the third-largest mall in the region. Cincinnati Mills and Tri-County Mall, both of which have also recently changed hands, are the only area malls larger than the Colerain Township center.
Feldman officials cited the population growth north and west of Cincinnati for their interest in the 1.1 million square foot shopping center. The mall is anchored by Macy's, Dillard's, JC Penney and Sears.
But despite positive demographics, chief executive Larry Feldman said the mall needed some pizzazz.
"Northgate's shop sales have peaked at approximately $300 per square foot - below potential - primarily due to a lack of excitement at Northgate," he said in a prepared statement. "FMP management intends to invigorate shopper interest and sales at Northgate through targeted capital expenditures designed to increase mall traffic."
Feldman said it wanted to add one or more entertainment-oriented retailers to the shopping center to draw more customer traffic. The company also said it would seek leases with several "trendy" sit-down restaurants.
Excluding its anchors and temporary tenants, Northgate's occupancy is at 78 percent.
Once the deal and another Florida acquisition closes, Feldman Mall Properties will have a total of six indoor malls in its portfolio with a total of 6.2 million square feet.
Publication date: 05-03-2005
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