The space has been vacant and blocked off from the rest of the mall since Kmart closed in 2009. New York-based Garrison Investment Group purchased the empty building for $5 million on Feb. 6, according to El Paso County Assessor’s records.
Victoria Harley, Chapel Hills general manager, confirmed that the mall’s parent company purchased the property without a bank loan.
The previous owner, listed as US Realty 87 on assessor’s records, never advertised the property for sale or rent, Harley said. It wasn’t listed on the MLS.
Harley said she didn’t know if the property was in foreclosure or bankruptcy, only that an out-of- state owner sold it to the mall owners.
“The purchase of this property will allow greater flexibility in making plans for the future of the property as a whole,” according to a formal statement from Urban Retail Properties, the management company that handles the mall.
The mall will be able to lease or sell the space to potential new users, Harley said. Someone could make basic updates and move into the space or it could be demolished and replaced depending on what a future user might want.
Chapel Hills Mall, managed by Urban Retail Properties, opened in 1982 and is a two-level, 1.2 million square-foot enclosed mall. Six traditional department stores, Dillard’s, J.C. Penney, Macy’s, Sears, Dick’s Sporting Goods and Burlington Coat Factory anchor Chapel Hills Mall, which also includes over 105 specialty shops and restaurants.