Louis Joliet Mall up for auction May 15

The Louis Joliet Mall is up for auction later this month for a minimum bid of $5 million.

The auction is the latest twist for the Joliet mall, which has a high occupancy rate but has struggled for several years, like other indoor malls, with the closing of anchor stores and trends away from mall shopping.

Bidding for the mall starts at 11 a.m. May 15, according to a posting on the website crexi.com.

The mall occupancy rate is more than 92%, according to the listing.

But that rate would not include the two biggest vacancies, the empty Sears and Carson Pirie Scott anchor stores. The anchor stores are owned separately from the mall, and the Sears store was sold at the end of last year to a Chicago-area car dealer.

“The Carson’s has been up for auction a couple of times,” said Doug Pryor, executive director of the Will County Center for Economic Development. “It’s not unusual to see this kind of activity. It will be interesting to see who the next owner of the mall is.”

Just who the current owner is unclear as the mall has changed hands in recent years amid financial difficulties.

JLL, a commercial real estate group, currently is the management company for the mall. Eric Loula, who started as mall manager when the property was owned by Starwood Retail Properties, is still the mall manager, providing some stability through its transition.

Two of the four anchors remain: JCPenney and Macy’s.

JLL is serving as the broker for the current sale, according to the website posting.

The Louis Joliet Mall area is the central retail and restaurant district of the city.

“As a submarket, the Louis Joliet Mall and everything around it is very vibrant,” said Steve Caton, a commercial broker who handles land in the mall area.

“We still get a lot of activity,” Caton said. “There are a lot of retailers still looking to land in and around the area.”

The area has good demographics, a location right off Interstate 55 and “a great tenant mix,” he said.

The future of the district, however, could be challenged a new project underway at Interstates 55 and 80, where Cullinan Properties wants to attract retailers, restaurants, hotels and other users.

Cullinan this week announced a new name for the project formerly dubbed Rock Run Crossings. It is now Rock Run Collection.

Caton said the two areas will compete for retailers and restaurants.

He noted that a number of indoor malls in the Chicago area have been undergoing redevelopment for uses other than retail, creating more of the mixed-use environment that is planned for Rock Run Collection.

“Clearly,” he said, “the mall world has changed.”