Chicago Seeks Court Order to Vacate Namdar’s Ford City Mall

Chicago is asking a Cook County judge to force tenants out of Ford City Mall, citing a long-running failure of the property’s fire suppression system that officials say poses an immediate safety risk.

The city filed an emergency motion late last week as part of a building code lawsuit it brought in May against the mall’s owner, Great Neck, New York-based Namdar Realty Group, according to court records and the motion. Crain’s reported that the 960,000-square-foot mall at 7601 South Cicero Avenue is more than half vacant and has “deteriorating” conditions that include flooding and exposed wiring, the city alleged. Officials say the most urgent issue is that the fire suppression system serving the mall, nearby hydrants and the adjacent AMC Ford City 14 theater remains out of service.

At a virtual hearing Monday, Chicago Assistant Corporation Counsel Greg Janes told the court the system has been nonfunctional for nearly two years, despite ongoing efforts to track down leaks.

“We don’t have a safe mall that we can continue to have open for the foreseeable future,” Janes said, adding, “We are in hold-our-breath time.”

The litigation is transpiring as Chicago-based Kurv Industrial, formerly Bridge Industrial, seeks to acquire the 66-acre property from Namdar and pursue a roughly $150 million redevelopment, according to the outlet. Kurv’s plan calls for demolishing the mall’s main portion and replacing it with four warehouses, though the project still needs City Council approval for rezoning.

Namdar, known for owning distressed malls, has faced similar pressure in the region, including a condemnation fight over Stratford Square Mall in Bloomingdale that ended with a nearly $8.8 million settlement and demolition. More recently, Namdar and Mason Asset Management have bought several Loop office buildings at steep discounts, underscoring the firm’s continued bet on challenged properties.

Namdar paid $16.6 million for Ford City Mall in 2019.

Sources familiar with the situation said the entitlement timeline has been slowed by the safety litigation, and a resolution may be needed before Kurv can close.

Chicago Fire Department Lt. Robert Steffens testified that a suppression system test last week failed, and he raised concerns that persistent leaks could destabilize the site. Steffens warned of the risk of a sinkhole forming in the parking lot or beneath a building if the system fails catastrophically.

Cook County Circuit Judge Leonard Murray did not immediately order the mall vacated, but set a Thursday deadline for Namdar to submit a written response, according to the publication. Murray also directed the city to notify tenants that a closure order is a possibility.

Namdar General Counsel Joseph Loloi said the company has spent heavily to address “huge water leaks, burst sprinkler heads and blown booster pumps.” Loloi told the judge contractors had not located leaks after last week’s halted test and that the company is investigating a potential sewer basin collapse, according to the outlet.

A Kurv spokesperson declined to comment, and a spokesperson for Namdar and J.C. Penney — the mall’s only remaining anchor — did not respond to requests for comment.

Nearby stakeholders are also watching the case, including Tootsie Roll Industries, whose headquarters and manufacturing facility sit next to a northern portion of the property that Kurv is not under contract to buy, according to the outlet. Attorney Tom Raines, who represents Tootsie Roll, cautioned against assuming a sale would eliminate the underlying risk if Namdar retains control of the adjacent parcel.

— Eric Weilbacher