H
ull Property Group has agreed to purchase the distressed Northlake Mall from its receiver for $39 million, marking a significant turnaround for the financially struggling property. The Georgia-based developer will pay $37 per square foot for the two-story mall, a substantial discount from the $234 per square foot that Starwood Capital Group paid over a decade ago.

    Starwood's struggles with vacancies and financial obligations led to its default on a $646.6 million loan tied to four malls, resulting in Northlake Mall being placed under receivership by Spinoso Real Estate Group in 2021. The sale to Hull Property Group represents the culmination of an extensive marketing process overseen by JLL.

    The developer is acquiring the interior mall and anchor buildings, including Macy's, Belk, and Dillard's. The value of suburban malls nationwide has been declining due to reduced demand and lack of foot traffic, with the average closing price per square foot for malls sold in the U.S. dropping 21% from the third quarter of 2022.

    Hull Property Group's portfolio includes several shopping centers across the U.S., including properties in North Carolina. Spinoso Real Estate Group has worked to improve Northlake Mall's performance during its receivership, overseeing daily operations and securing new tenants. The $39 million purchase agreement is expected to close shortly after court confirmation.