With a new owner soon to take over, Vista Ridge Mall may see investment and new direction to revitalize the nearly 30-year-old retail center.
The property was sold at auction Sept. 27 for an undisclosed amount. Lewisville Chamber of Commerce President Ray Hernandez said that his sources told him it sold for more than was expected.
The auction was held online by Ten-X Commercial, which required a minimum bid of $4.5 million.
A representative of the Woodmont Company, which manages the mall on behalf of the owner declined to comment for our story.
Ten-X representative Christina Vargas said that the deal was signed and is currently in escrow and that more information would be available after the deal officially closes. As of Thursday, she did not have an expected date, but the deal could take 1 to 2 months to close.
Vargas said that the firm would disclose the purchase price at a later date after the deal officially goes through. Otherwise, if the buyer backed out, future buyers would have an advantage knowing that price information.
Vista Ridge Mall had gone into receivership in May of 2016 after its prior owner Rouse Properties, Inc. missed a $64.6 million balloon payment that was due on the note.
The mall was later foreclosed by the lender, which hired Woodmont to manage it.
A new owner likely picked it up for just a fraction of the amount that had been owed. The mall is carried on the Denton County tax rolls at $25 million. That value has declined over the years. In 2009, it was worth $85 million. By 2015, it was on the rolls at $56 million, and 2016 was at $37 million.
According to Ten-X, the property was earning $2.1 million per year on $8.3 million in revenue. Even at a hypothetical $20 million sale price, the new owners would earn a 10.5 percent annual return. That’s before any possible reinvestment in the property.
Vista Ridge Mall is not the only local mall in transition.
In August, Plano’s Collin Creek Mall was sold to Sam Ware’s Dreien Opportunity Partners. They have announced plans for a $1 billion redevelopment of that property. Ware told The Lewisville Texan Journal that he did not bid on Vista Ridge.
The Lewisville Texan Journal expects that within a few weeks, the new owner will announce their intentions for the property. Stay tuned.
Update – 10/4/2017:
The Dallas Morning News reports that the property has sold for $17.3 million. While The Lewisville Texan Journal has not independently verified that number, it’s not far off from our estimate in the story above.