Simon Property sues Seritage over Boca Raton Sears

Simon is alleging it should have been able to make the first offer on the property

Nov.November 07, 2019 01:15 PM
5900 W. Glades Road and Simon Property Group CEO David Simon (Credit: Google Maps)

5900 W. Glades Road and Simon Property Group CEO David Simon (Credit: Google Maps)

Simon Property Group is going after the developer of the former Sears property at the Town Center at Boca Raton.

Simon Property Group, which owns the mall, alleges that Seritage Growth Properties, the real estate investment trust that was created to invest and redevelop Sears-anchored properties, violated the terms of the contract between the two parties. Seritage owns the parcel at 5900 West Glades Road.

The suit alleges that the contract signed between the mall and Sears in 1985 gave the mall the first opportunity to buy the property if it no longer served as a retail space, according to the South Florida Business Journal. It also gave the mall the right to an appraisal, the lawsuit alleges.

But Simon Property is alleging Seritage still has not had the property appraised. Seritage wants to build 239,000 square feet of retail, restaurant and entertainment space, as well as a hotel with up to 170 rooms. The complaint alleges that Simon has the right to make an offer to purchase the property if Seritage used it for non-retail uses.

Sears filed for bankruptcy protection in 2018 after years of losses, in part due to rising competition from e-commerce. Since then, the company has been propped up by billionaire owner Eddie Lampert and his hedge fund ESL Investments. [SFBJ] – Keith Larsen

Related Articles

David Martin, Russell Galbut, and a 500 Alton rendering (Credit: The Next Miami)

Miami Beach, Crescent Heights, Terra agree to settle dispute over floor-to-area calculations

Metropica and Joseph Kavana (Credit: iStock)

Condo buyer sues Metropica developer over delays

The Estefan warehouse next to Set Midtown’s office project before its billboard went up.

Gloria and Emilio Estefan’s Miami warehouse project ignites billboard battle

From left: Carlos Mattos, Nusret Gökçe, Panorama Tower and 999 Brickell (Credit: Getty Images)

Panorama Tower debris damaged building housing Salt Bae joint: lawsuit

Harbourside Place in Jupiter

More EB-5 investors allege fraud at Jupiter development

Shane Neman, and Mauricio Bello Richard Waserstein, with 525 Northwest 77th Street Marriott in Boca

Blackstone sells Marriott hotel in Boca Raton

David Arditi of Aria Development Group and 321 Ocean

Condo association alleges construction defects at 321 Ocean: lawsuit

Bob Zangrillo and the Magic City Innovation District

FTC halts alleged website scheme tied to developer Bob Zangrillo