The Gallery at South DeKalb will go up for auction in December.
By Zachary Hansen
A mall with several vacant storefronts will be up for sale at an auction next month, presenting an opportunity for a new owner to renovate or redevelop the massive retail center.
The Gallery at South DeKalb, previously named South DeKalb Mall, is available to purchase at an online auction from Dec. 6 through Dec. 8, according to real estate company Newmark. Bidding will start at $2.8 million for 442,370 square feet of leasable space within the regional mall, located in Atlanta’s Panthersville neighborhood.
Thomas Dobrowski, vice chairman of capital markets at Newmark, told The Atlanta Journal-Constitution that they expect the mall to sell for significantly more than the starting bid.
“We think the mall is going to be attractive to any number of potential suitors, both local regional developers as well as national mall-focused buyers,” he said. “We’ve seen nationally an inherent uptick in interest in this type of enclosed mall opportunity.”
The mall, which opened in 1968 and now spans about 71 acres, recently changed ownership after Thor Equities defaulted on a commercial mortgage-backed securities loan, Dobrowski said. When Macy’s closed its store in 2020, it left the floundering retail center with no anchor tenant.
Shoppers during the opening day ceremonies for the South DeKalb Mall (now the Gallery at South DeKalb) in 1968. Credit: Dwight Ross Jr./AJC 1968
The Gallery at South DeKalb will join several retail malls that have changed hands over the past few years or undergone massive changes to meet the shifting demands of shoppers.
In just DeKalb, Northlake Mall in Tucker is pivoting to a new business model by incorporating office space, while North DeKalb Mall near Clarkston will likely be redeveloped into a mixed-use development after it sold in September. An aquarium, SeaQuest at Stonecrest, also opened Tuesday at the Mall at Stonecrest as it shifts toward offering more types of entertainment options.
Newmark is selling the property on behalf of CWCapital, the commercial real estate company that inherited the mall when the loan went into default. Newmark is using Marketplace, an online commercial real estate auction platform, to conduct the sale. The listing became public Oct. 28. Newmark is also about to hold an auction for another mall in Anderson, S.C.
Dobrowski said the retail mall space has recovered from the COVID-19 pandemic better than most expected, leading to an increase in interest in the sector.
“These malls have recovered quite well, and there is an increased appetite for retail, especially retail that has a good value-add component to it through repurposing of vacant space or potential redevelopment densification,” he said.
Read the original story on AJC.com.
