SouthPark Mall in Moline has a new owner – the Kohan Retail Investment Group, a shopping mall investment company based in Great Neck, New York. CREDIT DAVE THOMPSON
The new owner of SouthPark Mall in Moline says he wants to improve and update the aging shopping facility. He also wants to make SouthPark a place where people shop, visit and have a good time. “We are going to come in and do all we can to help the mall. … We want people […]
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The new owner of SouthPark Mall in Moline says he wants to improve and update the aging shopping facility. He also wants to make SouthPark a place where people shop, visit and have a good time.“We are going to come in and do all we can to help the mall. … We want people to come in and give us a try,” said Mike Kohan, owner of the Kohan Retail Investment Group, a shopping mall investment company based in Great Neck, New York.In a very brief phone interview with the Quad Cities Regional Business Journal this morning, May 1, Mr. Kohan confirmed that his group is the new owner of SouthPark Mall, buying the shopping center from Macerich, the real estate investment trust that had owned the mall since 2012.The 850,000-square-foot SouthPark Mall in recent years has been anchored by Dick’s Sporting Goods, Dillard’s, JCPenney and Von Maur, with retail and restaurant stores including Ashley Furniture, Shoe Dept. Encore, Habanero’s Mexican Grill and Cantina, and on an outlot, Olive Garden. CREDIT DAVE THOMPSONHe added that he is looking forward to taking over the property and making changes. However, Mr. Kohan did not give specifics on those possible changes, a timeline for those changes or disclose the purchase price of the mall.Kohan Retail owns at least 26 shopping malls across the country. Those properties include the Lindale Mall in Cedar Rapids, Iowa, and the Southern Hills Mall in Sioux City, Iowa. (Go here to see a list of Kohan properties.)“The Kohan Retail Investment Group (KRIG) sees the future of aging malls as a place for more than just shopping. Kohan Retail has embraced entrepreneurism in our malls to assist new businesses in getting off the ground,” according to the group’s Facebook page.KRIG adds that the group is “dedicated to providing top-tier investment performance and exceptional service. Our centers feature a wide array of national retailers and distinctive regional and local shops. Additionally, we have spaces for dining, entertainment, family-focused experiences, and community events,” its website says.People shop at SouthPark Mall during a Black Business Expo event in February. CREDIT DAVE THOMPSON
City reveals mall purchase
The City of Moline announced the sale on Wednesday, April 30, in a short statement on its website. The city said it was notified by Macerich that SouthPark had been sold. However, the city did not identify the new owners. “The City of Moline recognizes the strong community interest in this property and is awaiting formal confirmation of the new owner before releasing further details,” according to a statement on the city’s Facebook page.“City of Moline Economic Development staff have been working diligently with prospective developers and businesses to bring the mall area back to life,” said Mayor Sangeetha Rayapati in a news release. “We look forward to getting to know the new owners and working together to transform this important business district.”City officials added that Moline is “committed to supporting thoughtful growth and revitalization throughout Moline.”
Revitalization attempts
The struggling mall, located at 4500 16th St., has been a focal point for city leaders for years. The 850,000-square-foot SouthPark Mall in recent years has been anchored by Dick’s Sporting Goods, Dillard’s, JCPenney and Von Maur, with retail and restaurant stores including Ashley Furniture, Shoe Dept. Encore, Habanero’s Mexican Grill and Cantina, and Olive Garden.Like many malls across the nation, SouthPark has faced some tough times as longtime businesses have departed and shopping trends have shifted to online shopping. People get a meal at SouthPark Mall during a Black Business Expo event in February. CREDIT DAVE THOMPSONAmong the departures was Chick-fil-A, a SouthPark tenant for almost 40 years, which closed its mall location in February 2022. That came on the heels of Victoria’s Secret closing its SouthPark location. SouthPark also lost one of its anchor stores, Younker’s, when the store chain closed down Aug. 29, 2018. Another anchor Sears closed its doors in October of that year. Its departure made room for the mall’s last major remodeling. Over the years, Moline has worked to bring new retailers and investment to the regional mall. In 2013, the city created a tax increment financing (TIF) district there as part of the then SouthPark Mall Revitalization Project to help developers recoup some of the costs of renovating the property. That led to the demolition of 250,000 square feet of the original mall and a major renovation of the remaining building in 2014 and 2015. But in November 2023, the City of Moline dissolved its TIF. In June of 2022, Macerich rolled out an incentive plan offering retailers six months of free rent if they signed a three-year lease in an attempt to help promote and expand local businesses there. The QCBJ contacted Macerich for comments on the mall sale, but did not receive a response as of Thursday. The SouthPark Mall website still listed the mall as being owned by Macerich as of Thursday morning.
Macerich eyes NorthPark changes
Macerich also is a key landowner of NorthPark Mall in Davenport. City officials on Thursday told the QCBJ that Macerich has told them they have no plans to sell NorthPark.However, NorthPark also has been the subject of possible changes. In fact, last year, a national consulting firm gave the Davenport City Council its recommendations to reduce the size of the mall; turning the mall into a place where more community events are held; and creating more use – such as housing – for the mall space.Officials with the real estate consulting firm Leland Consulting Group – hired by the city for $100,000 to perform the study – made recommendations to the council at a meeting on May 14, 2024.The recommendations outlined in the NorthPark study include:
Reduce – or “right-size” – the mall space: Leland is recommending reducing the mall footprint by 300,000 square feet including the demolition of the former Sears store. The goal is to reduce the square footage of the retail in order to reduce the risk of further tenant loss. This step needs to be taken because once a mall gets to 25% to 30% vacant, retailers who remain begin to have self-help rights, including rent reduction and the right to terminate their leases. Currently, NorthPark is close to 30% vacant, according to the study. However, according to the 2023 annual report from the mall’s key owner Macerich, the mall vacancy rate was at 18% at the end of last year. That report can be found here.
Create the Place: This includes building single- and multi-family housing near the mall. Plus, making the mall a destination. The area could use about 350 new housing units, states the study. The goal is to “redevelop the site as THE place to live/shop,” according to the study. Some ideas for the redeveloping the mall space include creating outdoor commodity spaces
Activate the District: Create events that will “drive as many people to the district as possible, as frequently as possible, and for long as possible,” according to the study. Some of these events may include farmers markets, community performing arts venues, retail and dining businesses.
(QCBJ Senior Reporter Kenda Burrows also contributed to this report.)
