Dillard’s Buys Texas Mall To Keep It Out Of The Hands Of 'Bad Actors'
Trademark Property Co. partnered with one of the nation’s largest department store retailers to acquire Longview Mall, where the retailer is a tenant.
Dillard’s and Fort Worth-based Trademark Property paid $34M for the 646K SF mall in Longview, Texas, which is about two hours east of Dallas. The shopping center is a longtime favorite of Dillard’s executives, who don’t want to see it deteriorate under less-than-ideal ownership, The Wall Street Journal reported.
“There are some bad actors out there in the mall industry that have been buying malls,” Dillard’s co-Chief Financial Officer Chris Johnson said to the WSJ. “They are not paying their utility bills, not paying property taxes. Every mall they own deteriorates.”
Johnson declined to name the bad actors. But the WSJ reported that Kohan Retail Investment Group and Namdar Realty Group, the most prolific buyers in recent years, have been criticized and in some cases sued by city officials who claim they allow malls to fall into disrepair while collecting rent from tenants.
Department stores are the most likely retailers to be impacted by inferior landlords because they tend to own their stores, removing the option to move out when a lease expires, the WSJ reported.
“Our stores still do OK,” Johnson said. “But it’s just a much better shopping experience if they maintain the mall.”
Little Rock, Arkansas-based Dillard’s and Trademark will bring the capital to modernize and reinvest in the 47-year-old Longview property, which is the only enclosed mall within a 45-mile-radius, according to a press release. Trademark will handle management and leasing.
Longview Mall was previously owned by WPG, formerly known as Washington Prime Group, which spun off from Simon Property Group in 2014.
The company identified Longview Mall as one of 14 malls in its portfolio with healthy demand from shoppers and tenants when it emerged from bankruptcy protection in 2021 after it sold off most of the malls it still owned, the WSJ reported. WPG announced plans to sell its remaining shopping centers in April.
Dillard’s acquisition comes as other department store brands are disposing of real estate. JCPenney is selling 119 stores to a Boston-based private equity firm for $947M roughly five years after the national retailer filed for bankruptcy.
Macy’s shuttered dozens of stores during the first quarter and projected in December that it would generate $275M of revenue from real estate sales in 2024. The brand plans to monetize $600M to $750M of assets by the end of 2026.
