Lakeside Mall in Sterling Heights has been sold to a development subsidiary of Miami, Fla.-based real estate and capital investment firm Lionheart Capital for a reported $26.5 million, the city announced yesterday.
The Lionheart subsidiary, Out of the Box Ventures, plans to keep the 43-year-old shopping complex intact, but will redevelop the surrounding property into mixed use opportunities.
“We are excited about our plans to revitalize Lakeside Mall with a new wave of premium tenancy and engaging activations,” Ophir Sternberg, CEO of Lionheart Capital, said in a statement released by the city of Sterling Heights. “One of the defining factors in our decision to close on this asset is the city’s progressive development culture. We share the city’s vision for the future of this property and look forward to significant collaboration with city officials and the community to ensure Lakeside Mall’s future is promising and a point of pride for the entire region.”
The new owners say plans for the 100-acre property include adding office and residential space.
Lakeside Mall, which was built by the late A. Alfred Taubman in 1976, founder of Tubman Centers Inc. in 1950 and today based in Bloomfield Hills, was expanded in 1990 and renovated in 2007. The center has more than 1.5 million square feet of retail space and is the largest mall in Michigan. It became available when the Chicago-based General Growth Properties Inc. defaulted on its mortgage loan.
“Our goal has always been to see Lakeside transform from a traditional retail mall into a mixed-use space focused on walkability, placemaking, and community,” says Sterling Heights Mayor Mayor Michael Taylor. “I’m proud of the proactive work we’ve done to help position the Lakeside Mall area for continued success for many decades to come.”
Lakeside Mall is located on M-59 (Hall Road) in Sterling Heights, one of Michigan’s busiest retail corridors.