Dillard’s has acquired Longview Mall in East Texas for $34 million, partnering with Trademark Property to purchase the 47-year-old shopping center from Washington Prime Group. This move is notable as many department-store chains are currently selling off real estate holdings to raise capital. For example, JCPenney is in the process of selling 119 stores to Onyx Partners for $947 million.
Chris Johnson, co-chief financial officer for Dillard’s, said the acquisition was not solely about expansion. “The company wanted to keep the asset out of the hands of ‘bad actors’ in the mall business,” Johnson stated.
Some companies that have purchased malls in recent years, such as Kohan Retail and Namdar Realty, have faced lawsuits and criticism over property management practices.
Department stores co-owning malls was once common practice but became rare after the early 1990s. Industry sources note it has been decades since a major department-store chain held such a stake. Recent exceptions include Walmart purchasing Monroeville Mall near Pittsburgh and Home Depot acquiring a Virginia mall.
Dillard’s stands out among its peers by owning most of its 272 locations and maintaining a strong balance sheet with more than $1 billion in cash on hand as of the second quarter. This financial position enabled CEO Bill Dillard to make this acquisition.
Longview Mall had remained one of Washington Prime Group’s stronger properties during bankruptcy proceedings. Dillard’s presence has been credited with keeping the mall relevant. Trademark Property will manage leasing and operations at Longview Mall, beginning with improvements like lighting upgrades, refreshed entrances, and new seating areas aimed at increasing leasing activity and sales.
