CBJ Newsmakers: Lindale Mall sold to New York firm

This story is a part of the CBJ’s Newsmakers edition. This year-end wrap-up from the staff of the Corridor Business Journal is a compilation of the year’s most noteworthy articles and projects, as told through stories that appeared in the bi-weekly issues of the CBJ. This story was originally published in May 2023. ________________________________________________________________________ Lindale Mall has been sold for $28.5 million in a transaction completed March 23, according to Cedar Rapids Assessor’s Office records. The sale transfers Lindale’s ownership from Washington Prime Group, based in Columbus, Ohio, to Kohan Retail Investment Group (KRIG), based in Great Neck, New York. The 723,666-square-foot Lindale Mall, at 4444 First Ave. NE, opened in September 1960 as Cedar Rapids’ first large-scale mall. It currently houses approximately 70 storefronts and service agencies in its enclosed structure, along with several peripheral businesses.

The sale includes the main mall structure and nine other parcels as listed below, with their listed assessed valuations:

• The former Hy-Vee store at 279 Collins Road NE, $2,244,400
• Jared The Galleria of Jewelry at 159 Collins Road NE, $1,390,700
• Parking lot outside former Hy-Vee, $1,382,500
• Jo-Ann Fabrics store at 255 Collins Road NE, $1,322,300
• Five Guys Burgers and Fries, 157 Collins Road NE, $877,600
• Fantastic Escape, 4444 First Ave. NE, $855,400
• Vacant wooded parcel, 0 First Ave. NE, $1,100
• Vacant land and private road/yard lights (perimeter road), 0 First Ave. NE, $0
• Vacant land and private road/lights only (perimeter road), 0 First Ave. NE, $0

The properties included in the sale have a total assessed value of $36,760,900, including a value of $28,686,900 for the main mall structure, according to Assessor’s Office records. Other properties that are part of the mall’s footprint are not included in the sale, including the former Sears store, a McDonald’s restaurant, a Firestone auto service garage and a building housing Rapid Foods, a cloud kitchen space that indicates on its website “all our restaurants are currently closed.” Lindale Mall general manager Becky Eckley said the mall’s sale is a positive step for the future. “Lindale Mall has served an important and intentional placemaking role in the community for more than 60 years, and we look forward to continuing to provide the retail environment, experiences and events for our families to enjoy,” Ms. Eckley said. Kohan Retail Investment Group, founded in 2005, has just over 60 shopping malls in its retail portfolio, along with two New York hotels, including The Gallivant, a boutique hotel at Times Square in New York City. “Lindale Mall is an attractive investment, and while future plans are still being evaluated, the existing tenancy and customer loyalty makes this an outstanding addition to our growing portfolio,” said Mike Kohan, founder and CEO of the Kohan Retail Investment Group. Several Cedar Rapids leaders expressed optimism about the mall’s sale. Cedar Rapids City Council member Scott Olson, who also works as a Realtor for Skogman Realty, said the transaction is indicative of ongoing changes in Cedar Rapids retail dynamics, including the development of new retail hubs like The Fountains on the city’s far northeast side. “Hopefully, this new owner will dedicate some more time to continue to recruit and to get aggressive to fill up the spaces (in the mall),” Mr. Olson said. “The secret to keeping the rest of the tenants … they need to have traffic. People don’t come to the malls like they used to, so hopefully we’ll be able to attract other types of activities that will bring people to the site, which then helps the retailers.” Mr. Olson also said he was told that KRIG has retained all the mall’s current employees. Ron Corbett, vice president of economic development for the Cedar Rapids Metro Economic Alliance (CRMEA), compared Lindale’s potential future path with that of Westdale Town Center, which has been undergoing a dramatic transformation from a fully-enclosed mall to freestanding retail and commercial developments over the past several years. “The community watched as Westdale Mall fell in property value and continued losing many stores,” Mr. Corbett said. “The city was very supportive of the developer, Frew (Development Group), who stepped in and re-envisioned the property. Today the property value is up, and retail sales tax has rebounded. Lindale now is on a similar path.” CRMEA executive director Doug Neumann said he’s already met with Lindale representatives since the mall’s sale. “There’s a lot of optimism that this new ownership group will further develop the property and improve the mall,” he said. “Through all its changes in the last 60 years, the mall remains a critical piece of the retail landscape here, and it’s good to see the potential for new energy and investment.” KRIG has purchased several malls in recent years, and has been described as a company specializing in purchasing endangered or troubled retail properties.  _________________________________________________________________________

Newsmakers update

Fostering a sense of place

Lindale Mall is entering 2024 with new owners. “As the festive holiday season approaches, we eagerly anticipate hosting numerous local merchants and are thrilled to offer the cherished Santa experience tradition to create more cherished family memories,” Becky Eckley, the mall’s general manager, wrote in an email. In March, New York-based Kohan Retail Investment Group (KRIG) purchased the mall from Washington Prime Group for $28.5 million. The transaction includes Lindale’s 723,666-square-foot main building and nine outlying parcels, including the former Hy-Vee store at 279 Collins Rd. NE, but not the old Sears space, 146,278 square feet on the east end of the main mall. KRIG owns at least 52 shopping malls nationwide, according to its website, including Westland Mall in West Burlington. That doesn’t include Lindale, which wasn’t listed on KRIG’s website as of late October. The firm also owns a hotel in New York City. Opened in September 1960 as open-air mall Lindale Plaza, the mall was enclosed in 1980. A 1997 expansion added a parking ramp, since demolished, and food court to the original mall. Lindale currently counts about 70 tenants, “with just a few vacancies,” Ms. Eckley wrote. “We’re delighted to have recently welcomed exciting new ventures such as Olde Brick House Irish Cuisine, Rebel Rose Boutique, and Iowa Customer T-Shirts and Hats. Our primary focus is filling the anchor stores, and we collaborate closely with the corporate team to achieve this objective.” The former Sears store was marketed for sale in 2019. The former Younkers store at the west end of the mall remains vacant, used in recent years for temporary auto sales by Cassill Motors and as a seasonal retailer. “Lindale Mall has been a cornerstone of our community for more than 60 years, offering unforgettable family experiences and fostering a sense of place,” Ms. Eckley wrote. “We are grateful to continue this tradition by providing leasing opportunities to new and thriving businesses, nurturing strong relationships with existing tenants, and positioning the center for sustained growth.” — Steve Gravelle