Staying with the story
The Springfield News-Sun has provided extensive coverage of the Upper Valley Mall, from its financial troubles to how it affects area businesses. The paper will continue to explain what is happening and how it will affect area residents.
By the numbers:
72 percent — Current mall occupancy rate
379,373 — Square feet included in the auction
1971 — Year the mall was built
46 — Current number of tenants
Source: www.auction.com
By the numbers:
72 percent — Current mall occupancy rate
379,373 — Square feet included in the auction
1971 — Year the mall was built
46 — Current number of tenants
Source: www.auction.com
By the numbers:
72 percent — Current mall occupancy rate
379,373 — Square feet included in the auction
1971 — Year the mall was built
46 — Current number of tenants
Source: www.auction.com
The Upper Valley Mall is on the auction block, a move that surprised some Clark County officials as they look for options to develop a new plan for the site’s future.
The mall was listed on the website Auction.com this week with a two-day, online auction scheduled to begin on Nov. 16. The minimum bid is $1.5 million.
The mall slipped into receivership last year after former owner Simon Management Associates defaulted on a $47 million loan. Earlier this year, the mall took back-to-back blows when on consecutive days JC Penney and Macy’s decided to shutter their Springfield locations.
About 484,000 square feet of the property is owned by Midland Loan Services, according to the auction site. Portions of the mall owned by Macy’s and Sears aren’t included in the sale.
George Degenhart, planning and zoning director in German Twp., said the listing was a surprise but local leaders will work with any potential buyer to develop a long-term plan for the property. They’ve met with officials from Midland, he said, and had hoped to have more influence in the potential buyer.
“This leaves us kind of wide open,” Degenhart said. “That may be OK or it may be difficult.”
Midland Loan is a third-party provider of loan servicing and asset management for the commercial real estate industry. Officials from the company couldn’t be reached for comment.
The auction site shows the mall has a roughly 72 percent occupancy rate, and contains 164,000 square feet of vacant suites, with one anchor space available. It lists 46 current tenants.
“The mall is the only regional mall in Clark and Champaign counties, which gives it an exclusive competitive advantage in serving local shoppers,” a description of the property states on the site.
Equity, a commercial real estate firm based in Hilliard, recently completed a study for the Chamber of Greater Springfield that recommended putting a plan in place for potential uses besides retail. The mall has little chance of recovery, the Equity report showed.
Urban Retail, based in Chicago, took over daily management of the mall after it went into receivership, but has so far been unable to attract any new major tenants. Urban Retail declined comment on the auction.
Upper Valley’s situation isn’t uncommon, said Howard Davidowitz, chairman of Davidowitz and Associates Inc., a national retail consulting firm based in New York City.
Despite the mall’s struggles, the property still has value and an auction is a common way to seek a buyer, he said. Most current leases are likely short-term and could be off the books in a year or two, Davidowitz said.
“The land and maybe some other parts have value,” Davidowitz said. “Money is owed, everything is collapsed and it’s bleeding every day. Something has to happen.”
Greg Hasser of Yellow Springs was shopping on Upper Valley Pike on Friday. He said he remembers when the mall was new.
“It’s like everything, when it’s new everyone is excited to see what it is,” he said. “Then after a while it gets old and they find some place else that’s new.”
The Boonshoft Museum of Discovery has a location at the mall and its contract runs through March, said Kristy Creel, director of marketing. The plan now is to extend that lease, she said, although that could vary depending on several factors, including the mall’s ownership situation.
“The mall is obviously in flux at the moment a little bit,” Creel said.
Even after the auction, the property could slowly decline as local officials and a potential buyer try to develop a plan to redevelop the site, Davidowitz said.
“If this is like most, it will drag on for a very long time and not much will happen,” Davidowitz said. “Nobody should get too excited.”
It’s too early to say what buyer might be interested in Upper Valley or their plan for the site, Degenhart said. But local leaders know they don’t want the property to become a flea market with owners getting any tenant possible to fill it, creating a long-term eyesore.
“The corner is still one of the best corners in Clark County,” Degenhart said. “Now that we are seeing Bechtle Avenue very close to being filled, I would think the next natural place to truly have growth is probably going to be back to the Upper Valley Mall area.”
Clark County Commissioner John Detrick believes a lot will depend on the new buyer.
“The potential is still here with the right owner so from a county standpoint we’re optimistic that there will be a motivated person buy it and bring it back in some capacity,” he said.
Scott Cozzolino opened Epic Loot and Games at the mall just a few days ago. It’s still early, but he said it’s been busier than expected so far.
He knew an auction was possible when he decided to open at the mall.
“The fact that it’s going up for sale in and of itself doesn’t really mean anything,” Cozzolino said. “It just depends who buys it. What I’m hoping is whoever buys it is interested in continuing the development process to try to continue to turn the place around.”
Until a buyer is in place, it’s too early to say what the property might look like moving forward, Degenhart said. Macy’s, which owns its space and parking lot, has been open to working with local officials, he said.
“We’re down, but I think the only way we can go is up,” Degenhart said.
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