Northridge Mall has a motivated seller. But its sale listing fails to land a buyer

Milwaukee's former Northridge Mall has a motivated seller − but a recent effort to attract a buyer didn't result in any offers.

The Milwaukee Journal Sentinel reported Dec. 13 that Northridge, with around 100 acres at West Brown Deer Road and North 76th Street, was being listed for sale for $2 million.

That came less than a week after the announcement of a $15 million grant to pay for the dilapidated mall's demolition under a pending city raze order.

The listing included an unusually tight deadline with offers due by Dec. 15.

"We were unsuccessful in obtaining an offer prior to the deadline we were given," said John Melaniphy, president of Chicago-based Melaniphy & Associates Inc.

A couple dozen prospective buyers inquired about Northridge, said Melaniphy, whose firm was a consultant on the listing.

But the tight deadline didn't provide enough time for them to conduct due diligence before making offers, Melaniphy said.

Northridge owner U.S. Black Spruce Enterprise Group Inc. might have set the tight deadline "to avoid the loss of the property and potentially identify a buyer," said Melaniphy.

The property is still listed for sale, said listing agent Arthur Fedotov, of Coldwell Banker Commercial Real Estate. He said that would likely continue until a legal battle between Black Spruce and the city is resolved.

Gov. Tony Evers on Dec. 8 announced the City of Milwaukee would receive a $15 million grant, funded through the federal American Rescue Plan Act, to help pay for removing asbestos from the long-vacant mall, demolishing the buildings and other redevelopment work.

That's assuming the city's raze order proceeds against Black Spruce. The company, owned by Chinese investors, has a court appeal pending.

The city's raze order characterizes the former mall as a threat to public safety.

It has been the site of several break-ins and fires, and a mall maintenance worker was electrocuted there in 2019.

That case wouldn't go away with an ownership change.

Also, a $187,000 judgement lien tied to contempt of court sanctions for failing to secure the property, as well as roughly $1.1 million in overdue property taxes, would carry over to a new owner.

Northridge's possible demolition might depend on the outcome of Black Spruce's appeal of a lower court ruling upholding the city's raze order − the second such appeal filed by the company over the past four years.

There's no word on when the Court of Appeals might issue its decision.

Northridge closed in 2003 and was sold in 2008 for $6 million to Black Spruce's corporate predecessor, U.S. Toward Group Inc.

Their plans haven't proceeded to convert Northridge into a trade mart for Chinese companies selling clothing, furniture, toys, consumer electronics and other goods to North American wholesale buyers.

The city in 2019 started raze order proceedings.

Milwaukee-based Phoenix Investors LLC in March said it had an agreement to buy the former mall and convert it to an industrial storage complex. Mayor Cavalier Johnson's administration opposed those plans, saying it wouldn't create enough jobs.

Phoenix owner Frank Crivello said in July the company was no longer interested in pursuing its plans because of City Hall's opposition.

Meanwhile, the city is pursuing plans to demolish Northridge's former Boston Store building, which it acquired separately. That work is to begin by Jan. 31.

Tom Daykin can be emailed at tdaykin@jrn.com and followed on Instagram, X and Facebook.

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This article originally appeared on Milwaukee Journal Sentinel: Former Milwaukee mall's $2 million sale listing fails to land buyer