The subject of Charlestowne Mall comes up in many conversations that I have with people throughout the community. Whether you live downtown, on the east side, or on the west side, people are curious. So, let me share what we know.
Charlestowne Mall on East Main Street in St. Charles
First, the mall property is part of an investment vehicle called a REMIC that pools commercial mortgages and then issues securities to investors. A company in Overland Park, Kansas services the Charlestowne REMIC and has been working to sell the property for several months.
Second, the City has learned of two bona fide interests to purchase the property. One of these offers has resulted in an executed purchase contract. The contract is still open, with the buyer group continuing its due diligence. The City has been informed that a sales agreement appears to be in the works and that a closing could take place in a few weeks.
Having said that, we know that things can happen to cause pending sales of this magnitude to go awry. For that reason, we must remain cautiously optimistic.
The good news is that we have a very willing seller in this case. Further good news is that the City stands ready to assist both a prospective buyer and the seller to facilitate the sale and revitalization of this critical property.
The unfortunate news is that while the negotiations continue, leases may expire without renewal and/or extension. As such, while stores continue to close, it is likely that, at least for the time being, the Charlestowne Mall occupancy rate will not get better and could very well worsen.
If there is some silver lining to the otherwise cloudy forecast, we understand that Classic Cinemas and the 4 anchors (Kohls, Carsons, Sears and Von Maur) are more or less holding their own – within the context of an overall tough economy, of course – and the City has heard nothing about any of these five businesses having any current plans to vacate the mall.
As soon as a sale is concluded, it will be in everyone’s best interest to make the transaction public – generating new interest and buzz. We also hope that plans for revitalization will soon follow.