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

Daily Digest Miami

Moishe Mana sells Hibiscus Island home for $12M, CitizenM scores $48M loan to build Brickell hotel

The front entrance of the Seybold building at 36 N.E. First Street

Diamonds aren’t forever: Seybold Building jeweler claims owner won’t relocate his store

Glenn Straub and the Palm House Hotel

Glenn Straub loses appeal on Palm House sale

Monty’s Miami Beach

Suntex Marinas is trying to evict Monty’s from Miami Beach property

Dean Trantalis, Ken Valach, and a Alexan Tarpon River rendering

Fort Lauderdale scores victory in legal battle against Trammell Crow

Set Midtown rendering

Brickell Construction sues for $1.2M in work at project near Midtown Miami

Daily Digest Miami

LVMH in early talks to buy Tiffany for $16B, Riviera Beach residents being evicted

Ugo Colombo and Craig Robins (Credit: iStock)

Judge tosses out Craig Robins’ claim that Ugo Colombo bribed juror in private jet case