ST. CHARLES, IL-Cupertino, CA-based investors Bobby Montanye and Alan Wong have agreed to buy the one-million-square-foot Charlestowne Mall here for less than $12 million. The property, which includes separately-owned Von Maur and Kohl’s stores, is about 75% occupied.

Midland Loan Services Inc., a special servicer appointed on behalf of the former owners that included Rochester, NY-based Wilmorite Inc., was the seller of the property. It’s reported that the former owning group defaulted on loans of more than $42 million.

The 19-year-old Charlestowne has about 112 units, including anchors Carson Pirie Scott, Classic Cinemas and Sears. However, less than half of the units are occupied. Stephanie Mower with Cushman & Wakefield, who represented the seller, says that the retailers moved en masse to newer lifestyle centers in nearby Geneva, IL and Algonquin, IL.

“This is happening throughout the country, this dynamic shift in the psyche of retailing,” Mower tells GlobeSt.com. “Retailers are retooling in this economy, and they are looking away from big malls. Where there were one-mall demographics and two malls were built, the mall that was just staying alive is failing. We have 11 distressed malls throughout the country where this is happening.”

She says that the new owners, bringing in foreign capital, have alternative ideas for Charlestowne, such as creating an indoor theme park or an industrial job center. “The demographics are still there to support retailers, and the average household incomes for the area far exceed the national average,” Mower says. The local area also includes a Target and Walmart.