Eastland Center mall is in receivership after the owner, Ashkenazy Acquisition Corp., defaulted on loan payments as of late.
The New York-based company is now more than 90 days delinquent on the loans, and technically, its official delinquency status is noted as being in foreclosure, said Sean Barrie, a research analyst with Trepp LLC in New York.
“Eastland was a mall that had the big stores that I would frequently visit,” said 57-year-old Cheryl Thompson, who says she enjoys online shopping more today. “The experience is different now.”
Like many malls, at one time Eastland was home to many department stores, restaurants and other shopping options. Opened in 1957, Eastland was part of a group of shopping centers built and managed by J.L. Hudson Co.
Today, the mall is barely economically functional due to its reliance on month-to-month leases with smaller businesses. Sears announced its departure in 2012, leaving a 160,407-square-foot space vacant.
Many who visit the Harper Woods area center consider it decimated, especially in comparison to the time of its peak in the late 1990s and early 2000s.
“I have not been to Eastland in years because of all the closings of the big stores,” said Pattie Adams, a lifelong Detroiter. “When I think of the malls I think of the big department stores, not the small stores.”
But some of Eastland Center mall tenants and shoppers maintain appreciation and loyalty to the historic shopping complex.
“I think it should stay open, it is a community social gathering place,” said Trellis Mercer, founder of Detroit clothing brand LoveLifeSwagger.
The local brand is sold in two Eastland stores, 4Men and Urban Angels. Mercer shared that sales are steady despite the financial woes of the shopping complex.
“Sales are well and not everyone wants to go downtown for clothes,” said Mercer. “Kids go to the mall to hang out and eat. This is as bad as an unexpected school closing. The east side needs a mall for the community.”
Recent reports announced Amazon as now the leader in apparel sales, surpassing Macy’s, JC Penny and Kohl’s after many years of continuous success via online retail.
Nationwide, retailers are reporting a steep decline in retail sales and traffic in stores.
Detroit and its suburbs are no different.
The same owners, Ashkenazy Acquisition Corp., of the now closed Northland Center owed $42.5 million as of April on $46 million in loans taken out against the property in 2006.
Information regarding the loan default was gathered from a complaint filed in U.S. District Court by lender U.S. Bank National Association.
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