outhern Park Mall, will spin off all of its strip center business and smaller enclosed malls, including the Southern Park Mall, into a publicly traded Real Estate Investment Trust (REIT), the Washington Prime Group Inc.
      Richard S. Sokolov, of 7763 Silver Fox Dr., Boardman, president and chief operating officer of Simon Property Group, will serve as chairman of Washington Prime Group’s Board of Directors,
      Simon first announced the spin off in Dec., 2013.
      According to the Simon Property Group, “Washington Prime Group will be one of the most diversified portfolios of shopping centers in the U.S. retail real estate industry, initially comprised of 98 properties totaling 53 million square feet in 23 states. After completion of the planned spin-off from Simon, Washington Property Group intends to become an independent, publicly traded real estate investment trust on the New York Stock Exchange. “
      Whether or not the spin-off will benefit the continued development and maintenance of Southern Park Mall could be a matter of debate.
      A study of the spin off conducted by Merrill Lynch suggests the move will allow Simon to focus on its most valuable assets. Southern Park is not considered one of the firm’s most valuable assets.
      Southern Park is considered one of Simon’s 44 lowest-producing malls.
      The Southern Park Mall was constructed and first opened in 1970 by the Boardman-based Edward J. DeBartolo Corp.
      Simon purchased its assets in 1997, and since that time says it has poured some $19.5 million into capital improvements at Southern Park.
      Meeting last week, Mahoning County Commissioners vacated a street in front of the mall property that will allow for the construction of a Jared Galleria of Jewelry store at a cost of more than $1 million by the Cocca Development Ltd.
      Last year the Western Reserve Port Authority said it would help the mall obtain some $4 million in funding in a no interest loan to improve energy efficiency and roofing improvements to Southern Park. Boardman Trustees still have to sign-off on that proposal.
      The Simon Corp. suggests the Southern Park Mall serves some 102,515 households where the median age of 42.6-years-old and the average household income is $54,855 a year. Total population in the ‘trade area’ according to Simon is 242.877.
      The spin off suggests the Simon Group is concerned about its Sears and JCPenney outlets, and its liabilities with those companies could be reduced.
      A study of the spin off suggests that the Washington Prime Group Inc. will have a stronger balance sheet “that should allow the company to be a competitive consolidator within the lower quality mall space.”
      The spin off could create development opportunities that had been at the bottom of Simon’s priorities, the study by Merrill Lynch suggests.