The village of West Dundee is in negotiations to buy most of Spring Hill Mall from its owner, Kohan Retail Investment Group of Great Neck, New York, local officials said.
“We began outreach earlier this year,” West Dundee Village President Chris Nelson said. “Discussions have been intermittent. An offer sheet was tendered, and that offer sheet is the current basis for discussions. The most recent progression in talks is welcomed.”
The investment group bought the mall in 2021 for about $2.6 million, Nelson said. Kohan CEO Michael Kohan could not be reached for comment Thursday.
Communications have been by email and phone, Nelson said, with village Attorney Michael Costaldo and Village Manager Joe Cavallaro handling the discussions on behalf of the village.
“If the offer is accepted, a period of due diligence would commence during which time specific — or granular — terms would be hammered out,” Nelson said.
Nelson did not disclose how much the village had offered, and said no timetable has been set for reaching a deal. In the best case scenario, the transaction would take several months to complete, he said.
This spring, the West Dundee Village Board agreed to purchase two of the mall’s former anchor stores: the empty Macy’s department store for $1.25 million and the shuttered Sears store and 14 acres of land for $2 million.
Nelson said village officials believe retail stores in a mall setting is a thing of the past as evidenced by the mostly-empty Spring Hill Mall and similar properties in other suburbs. By owning the mall, West Dundee officials would be able control how the site is redeveloped for new uses.
As for what the next steps would be, Nelson said without a final agreement in hand and not knowing what tenants remain, it would be hard to say.
“With that said, I would reiterate that it’s the village’s position that the value of the property is in the land and not in the structures that stand upon it today,” he said.
About 75% of the mall property is in West Dundee, including a Cinemark multiplex movie theater. The rest is in Carpentersville, including a Carson’s anchor store that closed in 2018 and a Kohl’s anchor store, which remains open and is owned by Kohl’s.
The village has not been in touch with any of the mall’s tenants, Nelson said.
“The existing relationship is between the mall owner and the tenants, and the village will respect that boundary until our status changes,” he said. “It’s worth noting that an acquisition, should it come to bear, would not include the Kohl’s building.”
Carpentersville Village Manager John O’Sullivan said the Carpentersville Village Board has given staff instructions to be cooperative but to not to engage in discussions to purchase distressed mall property.
“Our official and personal position is we sincerely wish West Dundee good luck in their endeavor to redevelop Spring Hill Mall,” O’Sullivan said.
Mike Danahey is a freelance reporter for The Courier-News.
