Southlake Mall in Hobart is under new management again. Our partners at The Times of Northwest Indiana report the mall’s previous owner defaulted on debt in Israel and the shopping center is reportedly facing foreclosure.
California-based Pacific Retail Partners and Golden East Investors in New York were appointed to oversee operations of seven malls previously owned by Starwood Retail Partners, including Southlake. The publication reports holders of bonds totaling about $250 million selected the companies late last year to manage the 1.3 million-square-foot mall.
“These properties are all prime examples of retail centers that serve a vital need in the community and will benefit from the tailored management approach that is a hallmark of Pacific Retail,” said Steve Plenge, managing principal for Pacific Retail Capital Partners. “We have the knowledge, expertise, and work ethic to make real change in these shopping centers quickly.
However, the publication cites Co-Star, a commercial real estate data firm, which reports a foreclosure action has been filed in Israel against the Southlake Mall. The report says an auction to determine the mall’s ownership is slated to take place in mid-May.
Commercial real estate professionals tell The Times that the mall is likely to continue operations as normal. However, while the ownership issues are ironed out, it is unlikely any additional investment or improvements will be made.
You can read the full story from The Times of Northwest Indiana by clicking here.