Simon Property Group Inc. is more than $20 million underwater on the property, which was first built in 1973. The company has been delinquent on its payments 10 of the 12 months, allowing its $61.9 million mortgage to slip into foreclosure this year, according to real estate records.
The largest owner of malls in the world is poised to shed one from its inventory, as a deal is pending with an unidentified buyer that plans to turn the aging mall into a discount shopping center.
But who is this mystery party involved?
A retail broker familiar with the deal said the buyer carries a national brand name most will recognize.
Benderson Development Corp. seems to have a hand in almost all commercial activity going on between Sarasota and Manatee, including the proposed 115-store University Town Center. But a company official said Tuesday they were staying out of this one.
Taubman Centers Inc., also a partner on the Town Center project, is a national mall developer and big player in retail. But Taubman specializes mostly in upscale centers, and it's unlikely they would be the ones that opt to renovate DeSoto into a discount mall.
The biggest developer of Outlet-style shopping centers is Simon, which also owns Ellenton Premium Outlets, but they're the sellers not the buyers.
Wesfield, which owns two malls in Sarasota and another just north in Brandon, could be viable option. A spokesman for the company declined to speculate about any potential deals this week, but I get the feeling it's not them ... just a hunch. They like to stick to traditional and more upscale shopping malls, which again is different from the plans now being drawn up at DeSoto Square.
Who are we overlooking? What's your best guess on the new buyer? And will you shop there again if they make some renovations and add outlet stores?
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