Dillard’s Site Devalued By Some $6.7 Million Since
      It Was Purchased In 2019
     
      Southern Park’s Value Declines By $12 Million According To County Auditor’s Records
     
      BY JOHN A. DARNELL JR.
      associate editor
      Based upon information provided to Boardman Township officials, the Southern Park Mall is “under contract” to be sold.
      In October, the officials were told the sale of the mall to an unannounced firm would be finalized by Nov. 20. However, that sale date was reported to be moved back by two to three weeks when township officials was told there were “issues involving the company purchasing the mall,” the Boardman News was told last week.
      While the mall’s current operator, Washington Prime Group (WPG) will not, and has not told township officials what company is interested in purchasing Southern Park, they have been told the purchase price will be “just under $30 million.”
      The sale of the property will not include the former site of Dillards and an adjacent parking lot, according to the township officials.
      Dillards was originally the Joseph Horne Co., that was built in 1973. It became Dillards in 1992.
      In Feb., 2019 the property was sold by Higbee West Main LP to the Boardman SC LLC, linked to the Cafaro Corp. that operates the Eastwood Mall in Trumbull County. Purchase price, according to the Mahoning County Auditor’s Office was $8.92 million.
      That same year, within six months, the property was devalued to $3.815 million, and by 2023, according to the auditor’s office, the property has been devalued to its current value of $2,173 million.
      Township officials note that the Boardman SC LLC agency has prevented certain capital improvements at Southern Park, including an expansion of Buffalo Wild Wings and two other proposed projects, utilizing what some call a ‘reciprocal easement’ that can be used to derail capital improvement projects at Southern Park.
      According to former WPG chief executive officer Lou Conforti, reciprocal easements allow owners of adjacent properties, like the Boardman SC LLC, to approve or disapprove projects that could impact their sites.
      Since its acquisition by the Boardman SC LCC, the former Dillard’s site has been abandoned and not repurposed.
      Southern Park Mall was constructed by the Boardman-based Edward J. DeBartolo Corp. in the late 1960s on a 92-acre site at Market St. and Rt. 224. The mall’s first store, Sears, opened its doors in 1969 as one of three ‘anchor stores at the center, that also included JCPenney and Strouss’.
      Near the turn of the century, ownership of Southern Park was sold to the Indianapolis-based Simon Property Group that invested a reported $15 million in the property for capital improvements.
      Then, in 2014 the property was ‘spun-off’ to WPG, a real estate investment trust, that assumed ownership of some 44 of Simon’s mall that were rated as “grade-B” sites. WPG promised to invest upwards of $30 million in capital improvements at Southern Park.
      Township officials have raised questions as to whether WPG ever fulfilled their pledge, and note some improvements, for example with roofing, lighting and electrical work, were funded with monies provided by the Mahoning County Commissioners and the Western Reserve Port Authority.
      Township and Boardman Local School officials, and Mahoning County Commissioners worked with WPG, then under the direction of Conforti, to accommodate the proposed plans, including approval of a 15-year tax abatement.
      However, in 2021 WPG filed for Chapter 11 bankruptcy and implemented a reorganization plan led by a global investment firm, SVP Global. When it emerged from bankruptcy, WPG had reduced its debt by an estimated $1 billion.
      In announcing the restructuring, the new company said in a press release, “Operating as a private holding company, majority owned by SVP Global, WPG will be well positioned to capitalize on opportunities to improve its portfolio and to strengthen its relationships with guests, tenants, partners and other constituents.”
      But township officials indicate little has been done since the reorganization to enhance the property at Southern Park, that now is apparently up for sale, a deal that Cafaro-related interests must approve under terms of the so-called ‘reciprocal agreement.’
      For property tax purposes, according to the Mahoning County Auditor’s Office, the Southern Park Mall is split-up on two parcels of land. One parcel, the original site of Southern Park, is valued at $33 million and generates about $1.232 million annually in property taxes.
      The auditor’s records show in 2023 the site was valued at $45.9 million; but in the same year was re-evaluated and its market value was reduced significantly, down to $33 million.
      A second parcel of the mall, that includes a movie theater, Tinsletown, is valued at $3.174 million and generates approximately $77,800 annually in property taxes.
      Records of the county auditor show the property was valued at $4.198 million in 1999.