Glickman Forms Distressed Asset Company

Once the court, on behalf of a mall's owners or as special servicer for the lender, assigns a property to URS, Glickman's Urban Retail will take over the day-to-day management of the asset. Glickman tells GlobeSt.com that his firm has more than 35 years of experience, with many cases being troubled assets, such as Inlet Square Mall, in Murrell's Inlet, S.C., a property that went through Chapter 11 reorganization.

Despite the current economic crisis, Glickman says there's not many firms that have jumped on the receivership bandwagon yet. "I think we're now entering a cleansing period, one that presents opportunities for firms such as ourselves," he says. "Personally, I think this market will last the way it is for two-to-three more years."

The new URS company has already lodged its first assignment: the 477,000-square-foot Village Mall, in Danville, IL. The property is anchored by Elder-Beerman, Sears, County Market and a Kerasotes six-screen movie theater. The new partnership was appointed by the court on behalf of the mall's lender and the owner, Howard & Mills Inc. "Village Mall continues to remain fully open for business serving the local Danville community," Glickman says. The property also includes the Commons, a 78,000-square-foot office component.

Glickman says Village Mall is typical of many retail properties in the current down market. "The mall was ignored, languishing, just not getting a lot of attention. That's very common these days, a lot of owners, even the big mall chains, are just not putting enough back into some properties, or who are just ignoring the physical aspects of their sites. And it's not always the owner's fault. If a bank won't give credit, how can you refinance, or do improvements? Some of these owners are just stuck and can't move forward," he says.