DeSoto Square closed permanently in April, according to local news reports. Meyer Silber, an attorney for ML Estate, declined to comment.
Namdar has also been sued by retailers, including International Decor Outlet, which in 2017 accused the landlord of contract breaches such as malfunctioning air conditioning, substandard repairs and inadequate security at the Regency Square Mall in Jacksonville, Florida.
“Landlord is an absentee landlord with a reputation as a ‘slumlord,’” the complaint in Duval County Circuit court alleged.
At the same property, Impact Church of Jacksonville accused managers of avoiding upkeep, making the “building look abandoned.” Impact paid $7.4 million in 2016 to buy a former Belk department store on the site, where it now runs a school as well as a church. The price was more than half the $13 million Namdar paid for the entire mall, which names 46 other tenants on its website.
Namdar declined to discuss individual cases but said such complaints are rare.
“There were factors that led to this, such as not having the rent to pay,” he said. “Properties that are marked for redevelopment are few and far between, so we maintain our assets.”
In addition to buying properties, the company has acquired potential tenants. Last year, Namdar and Mason paid $12 million to buy cinema chain Goodrich Quality Theaters Inc. out of bankruptcy. They also invested in the furniture chain formerly known as Jennifer Convertibles.
Among recent mall deals was the $10.3 million purchase in April of Marketplace at Brown Deer outside Milwaukee, valued at $45 million in 2005, according to loan documents and an announcement by the seller, Retail Value.
“We’d like to improve our quality but we’re not going to pay a crazy premium for an A-mall,” Namdar said. “Our goal is to stick to those B and B-plus assets. Those A’s get to be too crazy. The Ferraris of the world—that’s not the kind of car we’re looking for.”
This article was provided by Bloomberg News.