When the Mall of the Bluffs was sold last month to Namdar Realty Group, the price tag was not disclosed. Now, we've learned the purchase price – $8.5 million, according to public records.
The owner of Namdar, Igal Namdar, was not available this week for comment. But the realty group, which is based in Great Neck, N.Y., reportedly wants to maintain the retail center. Namdar's subsidiary, Dearborn Realty Properties LLC and a partner, Z.E.A. Capital Realty Holdings LLC, purchased the mall from General Growth Properties of Chicago.
How much do struggling malls sell for?
That depends on location, condition and other variables. In 2010, for example, Frank Krejci of Century Development bought Omaha's 700,000 square-foot Crossroads Mall, for $9.5 million.
The Mall of the Bluffs, which offers 730,000-square-feet of retail space, is located just off Madison Avenue near the Interstate 80 junction. It opened in 1986 to much fanfare, but has struggled in recent years. It lost two of its anchors to newer developments across town — J.C. Penney moved to the Marketplace in 2008 and Target moved to Metro Crossing in 2009 — and Barnes & Noble closed in 2011. Last year, its former owner General Growth Properties reported that the mall was more than one-quarter vacant. The mall's tenants and city officials have said they hope the recent acquisition will result in a rebirth of the once flourishing mall.
The Namdar group owns 5 million square feet of commercial real estate, including shopping malls in Tulsa, Okla., New York City, Detroit and Columbus, Ohio among other properties.