If discussions on social media are any gauge, Lewisville Texans have their ideas on what needs to happen with the Vista Ridge Mall in Lewisville. If you can get your hands on $4.5 million and some change, you might be able to own it and give your ideas a try.
The mall goes on the auction block Aug. 21 through 23 through online real estate auction firm Ten-X Commercial.
In April, 2016, the mall’s owner Rouse Properties, Inc. missed the $64.6 million balloon payment due to its bank, resulting in the mall going into receivership. It wasn’t the mall’s first time in trouble — its previous owner went bankrupt in 2009.
Ten-X requires a $50,000 participation deposit to register for the auction. The opening bid is $4.5 million, but it’s likely to go for much more. The 724,381 square foot mall on 45 acres is valued on the property tax roll at $34.4 million. The land alone is worth $13.8 million, according to the Denton Central Appraisal District.
The mall includes 438,707 square feet of leasable space, not including its four anchor department stores. Macy’s, Sears, JCPenney and Dillard’s each own their buildings and associated parking lot areas. The Cinemark theater building is part of the mall property.
Ten-X touts the mall’s $2.1 million net operating income on $8.3 million revenue as healthy and able to fund the mall’s efforts to lease out the remaining vacant spaces. According to square footage numbers provided by Ten-X, the mall is currently 78 percent leased.
The mall and other brick-and-mortar retailers have suffered in recent years due to online sales. In a June meeting, the Lewisville City Council was informed that the sales tax revenues generated by all of the retailers in Vista Ridge Mall are now being surpassed by Bed Bath & Beyond’s online sales from their e-commerce facility in Lewisville. The retailer’s sales taxes brought in about $700,000 in the first few months of the year.
The future may hold challenges for an investor, given that three of the mall’s four anchors have had their parent companies announce store closures in the past year. Sears, JCPenney, and Macy’s have all announced closures, but Vista Ridge has been spared so far.