A blue light special? Chapel Hills Mall in Colorado Springs sells for deep discount
East Coast buyers have completed their purchase of the Chapel Hills Mall in Colorado Springs - paying a seemingly bargain-basement price of $33.5 million or less than half of what the property sold for seven years ago, El Paso County records show.
"It sounds like a heck of a discount," said Mark Useman, executive managing director with brokerage Colorado Springs Commercial.
Limited liability companies formed by Namdar Realty Group, Mason Asset Management Corp. and CH Capital Group, all of Great Neck, N.Y., bought Chapel Hills on Wednesday, records show.
Garrison had owned Chapel Hills since 2011, when the company and a then-partner bought it for $71.5 million from its bankrupt developer.
Chapel Hills' acquisition gives the Namdar-Mason-CH Capital group control of Colorado Springs' two enclosed regional shopping malls. The group also paid $20 million in 2015 to buy The Citadel, northwest of Academy and Platte Avenue.
The purchase of the mall, northeast of Academy and Briargate boulevards, includes interior store spaces, common areas and a 13-screen movie theater complex. The deal doesn't include buildings that house anchors Sears, Macy's, Dillard's and Burlington Coat Factory, records show.
Nobody knows for sure why the mall's price nosedived, said Useman. But the loss and potential loss of anchors and smaller stores probably contributed to the declining value of Chapel Hills, which opened in 1982, he said.
J.C. Penney, Gordmans, Old Navy and Borders, Books & Music are among retailers who've left Chapel Hills in recent years because of relocations and store closings. And while it remains an anchor, financially troubled Sears has closed stores nationwide.
Click here to read the full article by 11 News partner The Gazette.