UPDATE: Southlake Mall is beneath new administration after proprietor defaulted on funds in Israel. In keeping with reviews, a foreclosures threatens headlines in northwest Indiana
The Southlake Mall was developed in the early 1970s by the then owner of the Cleveland Indians, Richard E. Jacobs, in grain fields in the then unregistered Ross Township and contributed to it together with the now destroyed Radisson in the Star Plaza Hotel and the Star Plaza Theater to change the area around US 30 and Interstate 65 on the Hobart-Merrillville border into the busiest commercial district in northwest Indiana.
But shopping malls and traditional retailers have lost their luster as more and more Amazon trucks are moving packages around the area. Southlake Mall has suffered from several vacancies in recent years, including the anchor stores Carson’s and Sears. The brick and mortar retailers have struggled with more and more people shopping online, leading to multiple closings in recent times including Justice, Gander Mountain, Helzberg Diamonds, Albert’s Diamond Jewelers and Porkchop.
The trustees said in an Israeli court that Southlake Mall was “subpar” even before the coronavirus pandemic exacerbated problems in the retail sector, Co-Star reported.
Aaron McDermott, president of leading commercial real estate company Latitude Commercial, said the general public shouldn’t see an immediate impact on the mall.
“While the property is in foreclosure, the bank must acquire the property through the sheriff’s sale and will likely look for investors to buy the property,” he said. “When a mall as big and similar to Southlake is funding its debt, the most important part of the valuation is based on the income they get from tenants.