The Minnesota-based company that planned in January to buy the Macon Mall is not pursuing it any longer.
“The due diligence period ended on March 4, 2010, and we cancelled the purchase agreement at that time,” Traci Tomas, executive vice president of Continental Property Group said Friday in an e-mail.
Tomas did not respond by late Friday about why the deal was not consummated.
The owner of Continental Property Group, Brad Hoyt, said in mid-January the company had a contract to buy the mall out of foreclosure from the lender. It planned to invest “substantial capital” into the mall and decrease the size of the retail space by about 35 percent, Hoyt said then. The deal was expected to close in March.
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“There have been other interested entities out here taking extremely long looks at things,” said Brian Olivi, general manager of Macon Mall. “I would like to think something is going to happen here in the near future.”
Chicago-based Jones Lang LaSalle has managed the property since July 2008 when it was appointed receiver of the property by the court.
Kris Cooper, managing director of Retail Capital Markets for Jones Lange LaSalle in Atlanta, said the company is “working with a new buyer to try to facilitate a sale. We are making good progress in that regard.”
Cooper declined to disclose who the potential buyer is or the sale price.
Macon Mall LLC and Burlington Mall LLC in North Carolina — both owned by the Lightstone Group LLC — were used as collateral for a $141.2 million loan. Foreclosure proceedings began in 2008 because of nonpayment; however, the auction in November to sell the Macon Mall was postponed and the lender continued to own the property.
The Burlington Mall was sold to a Burlington investor group for $10.2 million, according to a May 18 article in The Wall Street Journal.
The Macon Mall was built in mid-1970s. After a major renovation in the late 1990s, the mall had six anchor tenants: Belk, Sears, Dillard’s, JC Penney, Macy’s and Parisian.
In 2006, the Parisian store chain was bought by Belk Inc., and a year later the 104,000-square-foot Parisian store closed.
In October 2008, Dillard’s department store announced it would close by the end of that year.
A new Dillard’s opened at The Shoppes at River Crossing in north Bibb County at the same time.
To contact writer Linda S. Morris, call 744-4223.