NY’s Kohan Retail owes property taxes on suburban Chicago mall

UPDATED Mar. 1, 2023, 9:37 a.m.

The owner of a suburban Chicago mall, a New York firm that spent recent years buying up properties on the brink of foreclosure, is more than three weeks late on a property tax payment.

Kohan Retail Investment Group hasn’t paid the first half of a $204,000 tax bill on six Spring Hill Mall property parcels that was due on June 1, sparking the ire of local leaders, the Elgin Courier-News reported.

Kohan has amassed a portfolio of 55 malls and two hotels, many of which are neglected, The Real Deal reported in February. The vacancy rate for U.S. regional malls reached a record 11.4 percent in the first quarter of 2021, pushing some owners into bankruptcy.

CEO and founder Mike Kohan said he wasn’t aware that the payment for Spring Hill, on Route 72 in the villages of West Dundee and Carpentersville, was past due. “We’ll look into it,” Kohan said.

West Village President Chris Nelson said he’s aware of the Kohan group’s history, according to the Courier-News.

“They are a professional organization and should be prepared to pay their taxes on time,” Nelson said. “This also seems to be a pattern with them and, given their track record, I am concerned about them paying future bills.”

Another Kohan-owned property, the Lincoln Mall shopping center in south suburban Matteson, was forced to close in early 2015 after Kohan attorneys failed to provide money to enable the receiver to make adequate repairs, the Chicago Tribune reported.

According to the Kane County Treasurer’s Office, other Spring Hill Mall property parcel owners are up to date on their property tax payments. Those include empty Sears and Macy’s anchor stores as well as the Kohl’s stores. The mall is about 35% occupied, with Kohl’s as the only remaining anchor tenant.

The Spring Hill Mall is 42 years old. Kohan paid $1.9 million for the property in 2021.

Nelson told The Courier-News that parties have expressed interest in buying the property, though Kohan hasn’t indicated it’s willing to sell.

Update: A previous version of this article included an incorrect photo reference. That photo has been removed. 

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[Elgin Courier-News] – Rachel Herzog