The Triangle Town Center in North Raleigh is selling off a majority of its ownership in an effort to avoid foreclosure in a deal worth $181 Million.
The mall was constructed in the early 2000’s and finally opened its doors in 2002 to target “high income shoppers” with large amounts of disposable income. For example, the mall houses the only “Sak’s Fifth Avenue” in North Carolina, an upscale department store chain that was founded in Manhattan and exclusively sells luxury goods. Several more expensive, “posh” stores are located in the mall, often being the only ones of their kind in the Triangle area.
Even 13 years after the initial construction, the mall failed to achieve the success the owners dreamed of and has accumulated debt from operating costs.
Considering the legions of people who shop and own businesses in the mall, it makes sense that some would be nervous about a change in ownership. Naturally, these owners are likely to make drastic changes so that the mall will be able to turn a profit.
“I think it might turn out better…if they incorporate new and better stores, created for the age group that’s going to buy [teenagers], it’ll probably be a big success,” said Jefferson Norwood, shopper and employment-seeker who is also a sophomore at Leesville.
Speculation that the owners were going to sell the mall began in mid-2014 when, according to BizJournals.com, federal documents revealed that the owners needed to pay off a $177 million loan before the end of 2015. However, the transaction was not publicly announced until the beginning of February. If the owners did not have enough capital to pay off this loan by 2016, the mall would have gone into foreclosure, being repossessed by the banks that lent the owners the money.
BizJournals states that the previous owners were a Chattanooga based company named CBL & Associates Properties and The Richard E. Jacobs Group. CBL managed the mall and the Jacobs Group were the initial construction developers. They each held a 50% stake in the mall. Under the terms of the new deal, CBL will own only 15% of the mall, with 85% of the mall belonging to an undisclosed investing institution.
What specific changes are planned for the mall at this time are unknown, but we can say for certain that changes will be made by the new investors to help the mall turn a profit.