Five Mile Capital Partners, an asset management firm based in Stamford, Conn., acquired the Lakeforest Mall in Gaithersburg for about $100 million last week after its previous owners defaulted on loan payments, according to a source involved in the deal.
The company plans to add $20 million in improvements to reposition the mall and possibly add big-box stores to the parking lot areas surrounding it, according to the source, who spoke on the condition of anonymity because the negotiations were subject to confidentiality agreements.
Lakeforest Mall opened off of Interstate 270 in 1978 and has four big-name anchors: Macy’s, J.C. Penney, Sears and Lord & Taylor. Among the mall’s tenants are more than 100 shops and restaurants, including Forever 21, Victoria’s Secret, the Children’s Place and American Eagle Outfitters.
But, like other regional enclosed malls, its fortunes have not met pre-recession expectations, and securities analysts said the mall’s owners, including Simon Property Group, defaulted on a loan with an outstanding balance of $138.7 million.