A federal judge in Georgia may have helped clear the way for the future reuse of the former Sears and J.C. Penney stores at Northgate Mall.
U.S. District Court Judge Steven D. Grimberg of Atlanta has agreed to a proposed sale of interests in the properties which were held by a fund that was run by John J. Woods. He’s the former Chattanooga Lookouts investor who last year was accused by government regulators of operating a massive Ponzi scheme.
Business entities run by Chattanooga developer Bassam Issa and CBL Properties each are purchasing parts of the two mall properties held by the fund that they didn’t already own, according to court filings. They’ll both hold 50% shares when the deal closes, filings show.
Also, Issa’s company is buying the 70% interest he doesn’t own in 1.5 acres of vacant commercial land behind Logan’s Roadhouse near the mall, the filings said.
Issa said the deals for the mall properties will help in the redevelopment of the former anchor stores and the parking lots around them.
“Hopefully everything will go as usual now to develop the properties like any other properties,” he said in a telephone interview.
Stacey Keating, vice president of corporate communications for mall owner CBL Properties, said in an email that officials see the purchase as “a good opportunity to release or redevelop the sites.”
She said CBL, the Chattanooga company that owns Hamilton Place mall and is one of the nation’s largest shopping center operators, is working…
