The Hudson Valley Mall, located on a hilltop in Kingston, N.Y., was an enjoyable avenue for spending time on a weekend. Strolling through the various shops and large outlets like JC Penney and Macy’s soon became a thing of the past for the Hudson Valley Mall. JC Penny and Macy’s decided to close up shop and small retailers followed soon after. This caused a high rate of vacancy within the mall and its property value greatly diminished. In January of 2010, the mall was appraised for $87 million but sold for only $9.4 million in January 2017.
Hull Property Group, which owns 29 malls across the U.S., has a proven method for turning these poor performing vacant malls into profit soaring machines. These proven methods include, negotiating tax incentives with local governments, demolishing excess space and mending negative public perception. Buying property so cheap gives Hull Property Group the opportunity to invest in aesthetic improvements and allows them to focus on attracting more upscale retailers.
Every company has their own method for buying up a struggling mall but most can agree that buying cheap leaves many owners the opportunity to invest in their new purchase. Andy Weiner, president of RockStep Capital, says his mission is “to make small town America better.” He believes his company can revive the Bonita Lakes Mall and turn it into a thriving entertainment hub with an upgraded movie theater and high foot traffic tenants.
Malls across America are facing challenges and not every vacant, failing mall is a good candidate for a refresh. Chris Maguire, a Dallas based investor and CEO of Cypress Equities, believes there are malls still out there that can be turned around for great profit. “We think there are somewhere between 100 and 200 malls out there that fit the general criteria for a rehab, “said Maguire. Resurrecting a dying mall is no easy task but many are up for the challenge.