A struggling mall near Kennesaw was recently added to the portfolio of an investment group that specializes in outdated and distressed shopping malls.
Kohan Retail Investment Group recently acquired the majority of Town Center at Cobb for $71 million in late January, according to Cobb County property records. First reported Tuesday by the Atlanta Business Chronicle, Town Center joins more than 50 American shopping malls owned by New York-based Kohan Retail.
Regional malls nationwide have struggled in the wake of the e-commerce boom and COVID-19 pandemic. Several Atlanta area malls are being reimagined or redesigned to incorporate apartments, office space, entertainment attractions and other uses.
Town Center features 1.3 million square feet of retail space across a 92-acre property, located between I-75 and I-575. Kohan Retail bought the core of the mall, while other segments and big box stores have different owners including Macy’s and JCPenney.
The core of Town Center was owned by Simon Property Group until 2021. The luxury mall owner, best known locally for Lenox Square and Phipps Plaza in Buckhead, defaulted on payments on the Town Center loan, and the mall returned to its lender, Deutsche Bank.
According to the Chronicle, Town Center reported a 92% occupancy rate last September but declining sales. In 2021, the mall reported about $14 million in net operating income, the newspaper reported, down 33% from its peak in 2014.
Kohan Retail did not immediately respond to The Atlanta Journal-Constitution’s inquiries about the future of Town Center at Cobb.
Town Center is the only Georgia mall the company currently owns, according to its website.
The Town Center Community Improvement District released a master plan last year, featuring suggestions for ways to revitalize the mall. Those ideas include turning the mall into a mixed-use district and linking it to the county’s trail network.
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Regional malls nationwide have struggled in the wake of the e-commerce boom and COVID-19 pandemic. Several Atlanta area malls are being reimagined or redesigned to incorporate apartments, office space, entertainment attractions and other uses.
Credit: Alyssa Pointer / Alyssa.Pointer@ajc.com
Credit: Alyssa Pointer / Alyssa.Pointer@ajc.com
Credit: Alyssa Pointer / Alyssa.Pointer@ajc.com
Credit: Alyssa Pointer / Alyssa.Pointer@ajc.com
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