Namdar’s River Oaks Mall now Under State Microscope

Beleaguered mall czars Namdar Realty Group are facing another barrage from Calumet City, as the local government pushes for the Illinois General Assembly to approve its quick-takeover of the River Oaks City Mall at 96 River Oaks Center Drive.

“They’re not investing in the mall, they’re not going to invest in River Oaks (Center) mall…They’ve made that clear, and they’re just holding on to River Oaks mall for what they’re getting out of it right now,” Calumet City Mayor Thaddeus Jones told the Chicago Tribune.

City attorneys for the Chicago suburb on the Indiana border claim that they’ve found differences between land parcels the city previously appraised at $4.6 million and ones listed in court documents. Calumet previously offered to purchase the land for $13.2 million, Namdar countered for over $40 million for the mall.

A week before the city filed a petition with the Cook County court for eminent domain of the site, Namdar filed a lawsuit against the city, claiming it lost tenants following a letter the city allegedly mailed. The letter claimed that the site could lose storefronts after it took over the mall. A judge dismissed Namdar’s lawsuit.

The River Oaks location isn’t the only Namdar site in hot water. Their main building in the Ford Center Mall in Chicago at 7601 South Cicero Avenue was ordered to be closed permanently in June due to unsafe conditions, according to the city. The city’s outlined violations include outdated wiring, poor lighting, and most importantly, water leaks. If the consistent water leakage gets into the soil, there’s a chance the mall could collapse into a sinkhole.

The order was later rescinded after the fire suppression system was revamped, but the clock is still ticking towards midnight for the property. Chicago-based Kurv Industrial is still seeking to acquire the 66-acre property, and has plans for a $150 million redevelopment of the property, including the demolition of the main hub of the mall for four warehouses.

— Hunter Cooke