Receiver appointed to manage Northlake Mall in Charlotte
The future of Northlake Mall, one of Charlotte’s largest malls, is unclear following the appointment of a receiver over non-payment of debts, court documents show.
TM Northlake Mall, LP, defaulted on its home loan in November 2019 and has not paid rent, according to a consent order for the appointment of a receiver filed last month by Wilmington Trust in Mecklenburg County Court . TM Northlake Mall is affiliated with Starwood Capital Group, which purchased the mall in 2014.
The documents do not specify the amount owed in rent payments.
Wilmington Trust has appointed Spinoso Real Estate Group as Northlake Mall receiver on behalf of mortgage lender Wells Fargo, according to court documents.
A receiver is needed to manage, protect, maintain and operate the property and collect rents, according to the lawsuit. Spinoso, based in Syracuse, New York, may also “advertise and solicit bids to purchase property and other assets from the borrower,” according to court documents.
Three other Starwood-owned malls in Florida, Michigan and Virginia, combined with Northlake, secured loans of $ 725 million in the fall of 2014, documents show.
Spinoso officials and Wilmington Trust attorneys did not respond to the comments. Starwood Capital Group could not be reached for comment.
Northlake Mall is a 1.1 million square foot two story mall in North Charlotte. It opened in 2005.
Starwood Capital, a private global investment firm, purchased the mall in 2014 from original owner Taubman Center Inc. The purchase price was $ 248 million, according to Mecklenburg County real estate records.
Three years ago, Starwood delayed a $ 50 million project that would have added over 200,000 square feet to the 11-acre site next to the mall entrance. The company said it had to rethink the plan because “the retail business continues to evolve.”
Northlake Mall has struggled with other obstacles in recent years.
The mall lost a key tenant this year when Dick’s sporting goods store moved to Simon Concord Mills Mall, which opened there in February.
Like other local malls, including Concord Mills and Carolina Place, there have been store closures during the coronavirus pandemic, including Lane Bryant.
Jan Kniffen, a retail consultant and former retail director, expected 33% of US malls to close by 2030, but said CNBC This month, he believes that will now happen by next year, exacerbated by uncertainty surrounding anticipated store closings accelerated by the pandemic.
Northlake Mall a more than 140 retailers and restaurants, including Apple, Dillard’s, Macy’s, Belk and AMC’s 14-screen cinema. But many stores remain closed and the list of shopping centers only 115 stores and restaurants on its directory.
In addition to financial issues, Northlake Mall has also faced security concerns in recent years.
The mall had the highest total number of incidents from 2016 to 2019 compared to other Charlotte malls, with 1,700 non-violent crimes and 17 violent crimes, the Observer previously reported.
The latest incident in March was a shooting inside the mall. A minor has been charged with attempted murder.