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BLAINE, MN-Having lost its anchor tenants, Northtown Mall is spending more than $20 million to renovate, expand, add new retailers and anchor tenants. Despite losing some key anchors in recent months, the 976,000-sf mall owned by Ohio-based Glimcher Realty Trust remains a healthy retail center in a strong area of the Twin Cities.
Northtown is just off US 10 in an area that is one of the fastest-growing corridors in Minnesota. Northtown also plans to break ground for a 10,000-sf freestanding building, which it expects to complete next summer. The new building is slated to house a variety of coffee shop and restaurants as well as Electronics Boutique.
Northtown's renovation comes as it continues discussions to land a new department store or other anchor tenants. Mervyn's and Kohl's exited Northtown this past summer, pushing the mall's overall vacancy rate to nearly 40%.
Northtown's 130,000-sf Mervyn's store closed in July as part of the chain's Twin Cities shutdown that came when Target Corp. sold Marshall Field's and its Twin Cities' Mervyn's locations to May Department Stores. Some observers wonder if May may want to put a Marshall Field's store in the mall.
In August, Kohl's vacated its 83,000 sf. Three years ago, Montgomery Wards moved out as part of a company-wide liquidation, vacating 150,000 sf.
To help Northtown land new anchor tenants, the Blaine city council this summer approved $2.7 million in tax abatements for the center to be spread out over the next 10 years. Northtown's owners also are asking Anoka County for a similar tax relief to be spread over 10 years.
Glimcher Realty bought the mall six years ago. Northown competes with Riverdale Village Shopping Center in nearby Coon Rapids, MN, which has such retailers as J.C. Penney, Kohl's, Costco and Sears.
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