JACKSONVILLE, Fla. — Regency Square Mall owners said they're in the final stages of completing the sale of the Arlington shopping center to new owners. New York-based Namdar Realty Group confirmed to First Coast News on Tuesday that the company finalized the contract for the sale of Regency Square to a buyer whose identity will not be made public yet.
Whomever that new owner is, they have their work cut out for them.
The current owners of the mall, Regency Realty LLC, a partnership of Mason Asset Management and Namdar Realty Group, purchased the 56-year-old center in 2014. The group paid $13 million for most of the 1.4 million square foot shopping center.
Over the last decade or so, Regency Square, like many malls around the country, is a shell of its former self. Once a regional shopping hub pulling in shoppers from all over the First Coast, the mall sits now mostly empty and in disrepair.
“It was a great, great location at the time we first got here," said The Rhythm Factory Executive Director Michael Butler. "Things were perfect. It was a great fit.”
Butler says he’s seen a lot of change at the mall in the eight years since he opened his event space – The Rhythm Factory.
As his business in the front of the mall has grown, he’s seen one store after another close its doors and leave.
“Some of the people we used to come and see all the time, we see them moving out one-by-one, but we just kept our head down to see how we can make what we’re doing work," said Butler.
Butler says he’s made it work by installing his own A/C unit and maintaining all the paint and landscaping in front of his business.
Meanwhile, a quick walk through the mall shows giant trash cans and barrels to collect water from a leaking roof, sporadic A/C and one half of the mall by the old JC Penny roped off entirely.
Lens Crafters left in the past few weeks, and Bath and Body Works is shuttered with a sign that reads temporarily closed due to the temperature in the mall.
“The last time I went in there, I was in utter disgust," said Jacksonville City Councilman Ken Amaro.
Amaro's hoping new ownership could mean new opportunities for the massive space in the middle of his district.
“I don’t think an indoor mall will be successful, but there’s things they can do there," said Amaro. "Whether it’s retail, or groceries - something.”
Things have gotten so bad that State Sen. Clay Yarborough (R) wrote a letter to mall owners Sept. 8 as an "Urgent Appeal for Intervention at Regency Square Mall."
A portion of the letter states, " ... I am compelled to bring to your attention the pressing issues that continue to contribute to the severe deterioration of this once-thriving commercial property. For months, Regency Square Mall has faced significant challenges that have been unaddressed, causing immense hardship for tenants and visitors. One of the most concerning issues is the lack of ventilation and air conditioning, which has turned the mall into an unbearable environment."
In July, mall managers told First Coast News that a lightning strike caused a power outage that caused the air conditioning to go out. Some mall tenants - which are few and far between - were forced to close their stores while others closed for good.
"Please understand that my intention is not to place blame, but to advocate on behalf of the community and businesses," Yarborough's letter states. "If you have not done so, I kindly request that you personally visit the mall and assess the situation. Witnessing firsthand the challenges faced by those operating on your property will undoubtedly amplify the urgent need for corrective measures."
Yarborough got a response to his letter from Namdar COO Dan P. Dilmanian that read:
We value your concerns and we are pleased to inform you that we've finalized a contract for the sale of the mall.
The new buyer is aware of the necessary repairs and will liaise with the town soon to address the issues.
Butler is hoping the new ownership will be open to selling his portion of the mall to him, because he wants to stay alongside Impact Church and Lauren’s Seafood to be a part what he calls the Regency Resurgence.
“What happens inside that mall doesn’t affect us because we maintain our own items and our own excellence," said Butler.
