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Simon Property unloading Northlake Mall | Business

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Simon Property unloading Northlake Mall
Simon Property unloading Northlake Mall

ATLANTA -- As mall giant Simon Property Group invests millions into its premiere Atlanta properties including Phipps Plaza and Lenox Square, it's dumping one of its suburban malls.

Simon is unloading Northlake Mall in Tucker into a newly-formed real estate investment trust called Washington Prime Group, according to an April 22 filing with the U.S. Securities and Exchange Commission.

The company instead is focusing its growth on its larger malls and outlet centers.

The strategy comes as mall operators deal with new pressures to keep their projects relevant.

Retail is evolving due to rising e-commerce sales, and more retailers are leaving malls for street-level locations at mixed-use developments.

Nationally, regional mall construction has essentially shut down.

It's not the first time Simon has let go of a suburban mall. Back in 2012, it backed out of Gwinnett Place Mall. Now, that property is in the throes of a complex redevelopment.

Other struggling malls are being repurposed such as the former Shannon Mall site in Union City, which is planned to become an industrial park.

Simon announced Dec. 13, 2013 its plan to spin off 54 strip centers and 44 malls into an independent, publicly-traded REIT.

At the time, the company didn't release which properties would be included.

Northlake Mall is a nearly 1 million-square-foot mall that's anchored by Sears, J.C. Penney, Macy's and Kohl's. It opened in 1971.